Category: Strategic Planning

Australia, Benchmarking, business planning, Business Strategy, Economy, fundraising, goal-setting, leadership, Not for Profit Sector, partnerships, philanthropy, Strategic Planning, Women in Business

45% of charities receive funding from Government

Pamela Sutton-Legaud CFRE

With all the current debate about the amount of funding governments provide to private and public schools, it made me think about about how much of our charities’ revenue comes from government. I revisited research by the ACNC (Australian Charities and NFP Commission) particularly the 2016 Charities Report  I was surprised to be reminded how much charities funding comes from government and in comparison, how little from individual donations.

In 2016, charity revenue totalled $142.8 billion with just one per cent of charities’ revenues accounting for well over half (54.9%) of the whole sector’s total revenue. This is perhaps surprising enough in itself.

Over 45% of charities received funding from government grants and 70% received income via donations and bequests however this latter source of income made up just 7.3% ($10.5b) of all revenue.  Government funding represented 43% of all revenue.

Apart from government grants, many charities stated that they received ‘other’ income and this was a significant proportion of their income (49.5%).  However, in the 2016 report this ‘other’ income wasn’t broken down but could include income from Trusts and foundations, income from raffles, lotteries and gaming, membership and other fees as well as sponsorship, interest, rental income and dividends received.

Much media, industry and community attention is paid to fundraising to solicit gifts from individuals while the amount is comparatively small compared with government and ‘other’ funding.  Should there be an even greater reliance on individual philanthropy? Should the focus shift or does government get a ‘cheap’ deal by funding charities to do work they would otherwise not do or could not afford to do? Should the government provide this level of funding to charities? Or should we expect charities to rely on charitable donations in order to deliver their goals? Something to think about .

Source: Data for the 2016 Charities Report comes from Australian charities registered with the Australian Charities and Not-for-profits Commission (ACNC) at the end of each charity’s 2016 financial year. Where financial information was not reported by charities it was estimated. Visit australiancharities.acnc.gov.au/ .

Art, artists, Australia, Benchmarking, birds, Birdwatching, Books & Writing, business planning, Business Strategy, creativity, goal-setting, leadership, life balance, Photography, Strategic Planning, Victoria, Women, Women in Business, writer in transit, writing, writers, writers in residence, Writers

Change is good

Pamela Sutton-Legaud CFRE

Mono Negative

Keeping one’s blog up-to-date is important and the same is true with the associated website! I felt mine needed a good refresh so I’ve implemented an upgrade and reorganised my site. I’d love to hear your feedback. If you think it’s better than before let me know.

As I’m not so active on Facebook I’ve moved my bird photos onto this site and you’ll find them here  I like taking time to write about the things that interest me – and my interests are varied and on occasion, unrelated – but  I want to spend less time online … this is a challenge for all of us I’d say.  I find Facebook has become just a series of anonymous videos for the most part as many friends ‘follow’ but do not post or like so therefore communication has become a bit one way. So I’m putting my efforts into this site. Such as they are.

I have new projects I’m working on and hope to share them here soon. Less time on line (I’m hoping) means more time for real world projects to be completed.

If all of this makes sense to you, please let me know. We’re all friends here.

Benchmarking, business planning, Business Strategy, fundraising, leadership, Not for Profit Sector, partnerships, philanthropy, Strategic Planning, Uncategorized

Online fundraising and Regular Giving increases: findings by M+R Benchmarks Report

Pamela Sutton-Legaud CFRE

It’s refreshing to see some solid benchmarking on the trends in the NFP sector.

In this 10th edition M+R Benchmarks has created some highly useful data on trends in online fundraising. It involved 105 participants in eight sectors.

Interestingly, it shows a decline in response rates to emails; revenue growth increased by growth in email lists.

The report shows an increased trend in monthly giving which is very positive as this is a great way to provide sustainable revenue for organisations.

You can read the whole report here and I’ve quoted some highlights below.  By the way, the report includes some useful and illuminating graphs particularly about which sectors are growing and which are declining.

  1. “13% of online gifts came from mobile devices

  2. For every 1,000 email subscribers, nonprofits have 355 Facebook fans, 132; Twitter followers, and 19 Instagram followers. In 2006, those numbers were basically zero, zero, and zero: Facebook was limited to .edu email addresses, Twitter was just about to launch, and Instagram’s founders were still in college.

  3. Nonprofits invested $0.04 in digital advertising for every $1 of online revenue. This might not seem like much, but considering that overall online revenue grew by 19% in the last year, digital advertising is an increasingly important market for acquisition, conversion, and retention.

  4. The volume has been turned way up: the average nonprofit in our study sent the average subscriber on its list 49 email messages in 2015.

  5. Monthly giving accounts for 17% of all online revenue – monthly giving is growing quite a bit faster than one-time revenue. In the first Benchmarks Study, only about half of the participants had a recurring giving program at all.”

 

angels, business planning, Business Strategy, goal-setting, Strategic Planning

Is life really what happens when you’re making other plans?

Pamela Sutton-Legaud CFRE

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John Lennon had a point when he sang ‘life is what happens when you’re busy making other plans‘ – when it comes to every day life, it does seem like we plan one thing and end up doing something completely different . The thing is, these ‘plans’ are often not really plans at all. They are more like vague aspirations into which we put little effort so guess what, we end up doing something else (or nothing at all!)

When it comes to businesses, it can be much the same. We think we have a plan of action when in fact what we have is a germ of an idea that we might do something about later on… or maybe tomorrow… our plan of action becomes one big procrastination (or to be more polite, we put it off to do something else).

That’s why writing down our plans is a very good idea. Ever wondered why when you write a list you actually get things done? It works the same way for a plan. Get something on paper and start ticking off the action points. The written word has incredible power and a plan of action is a great way to make your goals come to life.

So why don’t more of us write a plan? Some of the reasons given for not writing down goals and objectives seem reasonable until we explore them:

“A goal without a plan is just a wish” – Antoine de Saint-Exupéry

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Objection 1: I might change my mind – this is in fact a self fulfilling prophecy.  You will almost certainly change your mind about your goals and plans but even more so if they are not written down – partly because you’ve already forgotten most of what you wanted to do! When they are written down, you can amend, embellish, clarify but you still have a plan.

“You can’t plow a field simply by turning it over in your mind.”, Gordon B Hinkley

Objection 2: I don’t like committing my ideas to paper

I love this quote.    How many times have I done this? Turned an idea over and over in my mind and never actually made it to the ‘field’.  The thing about just thinking about idea is that it is very easy to persuade yourself that the idea isn’t a good one. You work with the knowledge you have in your head only.  When you write up a plan, you can isolate those areas that need more research, where you have just made assumptions, where you know the truth of the idea… it’s liberating as once it’s written down, you can actually stop thinking about it for a while! And then get on with it when you’re ready.  There’s really is something fun (believe me!) about updating a draft plan you’ve written and getting all the detail into it so that you can figure out how you do.   You can share it with a good friend or your partner and start to get their feedback in an objective way. Try it it’s fun!

 “In preparing for battle I have always found that plans are useless, but planning is indispensable.” ― Dwight D. Eisenhower

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Objection 3:  I don’t like planning, I prefer to be spontaneous!

This is interesting because it is the act of planning (and not the dreaming about planning)  that is the whole point.  Planning, in my view makes you consider all possibilities and look forward. You consider the alternatives, you play with how you utilise your resources, you consider options. You can consider what your obstacles might be (in business, how the competition might react).

“Unless commitment is made, there are only promises and hopes; but no plans.” ― Peter F. Drucker

drucker-quote

Final word.  Get out there. Take your best plan (and the best plan is the one you have right now) and do something with it. Commit to your goals and objectives and get on with the things that are most important to you.  Get your business moving, learn that language, travel to the Pyramids.  Plan your work and work your plan.   Life is waiting for you. Unless you have some other plans 🙂

Australia, Business Strategy, Cancer, Cancer treatment, Dry July, fundraising, leadership, Melbourne, Movember, Not for Profit Sector, partnerships, philanthropy, Strategic Planning, Women

We went dry in July and helped raise over $4m – with @Dryjuly

Pamela Sutton-Legaud CFRE

dry july

@DryJuly, which raises money for adults living with cancer by supporting organisations involved with cancer research, equipment and treatment, raised over $4m this year through its online and social media marketing. See their beneficiaries here.

It’s a very cool annual campaign with very low effort on the part of the participants and I suggest it has the benefit of growing involvement year on year.

The campaign asks its participants to give up drinking alcohol for a month.  They can just stop there if they like – a great way to have a healthy month.  Most people however would make a donation to get involved and then perhaps raise money from their friends, family and colleagues.

It has a positive benefit for the participants who have an AFM – an alcohol free month – who basically could donate what they would have spent on alcohol during July to the Dry July campaign.

It would be interesting to see how many participants a) join again after the first year – ie their retention rate and then b) whether they raise or donate more money in subsequent years.  I’d like to know what their retention rates are given it is hard for many charities to attract regular donors via online channels.

It may also be a good way to involve men in fundraising – notoriously difficult.  Movember is another annual campaign (the participation requirement I like less as it involves my husband growing even more facial hair!) But I’m sure its successful in this time of trending beards!  This was a fantastic idea started in  2003 by Adam Garone (who sports a most impressive mo’) and the other three co-founders inspired 30 guys to grow a moustache or beard and fundraise for men’s health during the month of November. Now, 10 years later, the campaign runs in 21 countries and in 2012, over a million ‘Mo Bros’ and ‘Mo Sistas’ took part.  Some very hairy people out there! Barbers everywhere rejoice!

I love these innovative, fun and joyful ideas.  They focus very much on the user, the customer, the donor and do not rely on doleful images and sad stories.  Certainly, there is a need for that type of marketing (and many will tell you how well these elements help) but I do love the fun and happiness created by campaigns such as Movember and DryJuly.

Giving up the grog for July made me reflect on my own drinking habits – and that is a good thing. Perhaps its having a similar effect on others – another interesting piece of analysis to consider.

I encourage all of us in the fundraising and NFP sector to look for joyful ways to engage with our ‘customers’ and stakeholders – make them the hero, give them ways to engage that THEY like and watch how they get involved and even show off their participation.  Well done to DryJuly.  Great result.

Business Strategy, Economy, leadership, life balance, Strategic Planning, Uncategorized

Everything is awesome! Or, what I learnt from the Lego movie

Pamela Sutton-Legaud CFRE

awesome

A 24 hour plane journey from Melbourne to London and a multitude of movies I would otherwise never watch led me to a memorable hour or so watching the new Lego Movie.  A bit of ‘The Matrix’ meets ‘Family Guy’ I thought and all was good. Then, darn it, something started happening. I started thinking that there were messages hidden in this ingenious cartoon creation that I could learn from.

Perhaps it was jetlag but I was getting intrigued. Was this the subtext that I’m told is always submerged for adults only that is apparently part of every feature-length animated movie these days? You tell me.

So if you don’t know the movie, the evil Businessman is trying to ensure that everything stays perfect for ever and that the world works according to his and only his plans.

Mostly Lego world is doing just that until a humble construction worker stumbles upon a great secret that will change the world. He is the chosen ‘Special’ one (getting the matrix metaphor yet?)

Up to now we see an almost automated world where everyone knows where they should be, what they should be doing and what song they should love the most hence: ‘Everything is awesome!’ Yes this song is very annoying but you can’t help singing along! (Try the video and you’ll see…)

So get on with the learnings you say!

1. Being creative does not mean being random and disorganised

As the ‘special’ becomes known to the underground Lego resistance (yes I said that) he gathers together his band of merry men and women and they try to fight the bad guy in their own individual ways which leads to chaos and almost disaster. Teamwork is the answer – creative teamwork.

2. A charismatic leader is not needed

The Special tries his best to be inspirational but as he’s never been much more than ordinary humble construction worker who has always followed the rules he doesn’t know how to be a leader in fact he doesn’t have any real ideas at all. This does not stop them.

3. We are all special.

The lonely guy Emmet (the Special) discovers that he’s sort of not really the special after all. But it doesn’t matter! He’s special in a way no-one else can be and in a way no-one else expected! Go figure!

4. Following the rules is not always bad

Our little anti-hero Emmet (the Special) encourages his gang to fight the badguys with their own rulebook and use  it in their own way, an unexpected tactic which means that they work together as a team and beat the villains at their own game.  This they do to great success.  But they still manage to use their individual skills and creative expression. One even gets to build a spaceship and he is very excited. But I digress.

5. Trying to make everything perfect (or awesome) is not always very much fun or very helpful.

We want to give people enough guidance to work in effective collaboration to achieve positive results but not so much that all freethinking is stifled and they become robots following orders.

6. Help me clarify my objectives, give me a set of tools and some guidelines and let me at it.

A wise advertising man once said: “Give me the freedom of a tight brief” and he wasn’t discussing his underwear. Clarity of goal and methodology is very useful if we allow for individual skills and ideas and if we accept that ideas we wouldn’t have thought of while different are not necessarily wrong and could even be exactly what we needed at that moment.

7. It’s only work right?

When we take it all too seriously it becomes onerous for everyone and no fun at all. When you think we’ll spend 1/3rd of our lives asleep and 1/3rd (or more) at work (I don’t recommend you do them at the same time) it makes sense to make it interesting, engaging and allow for use of our diverse and unique skills.  I mean in that way, everything may actually be awesome! Yay!

 

Thanks for your interest. I’m writing this from the International Fundraising Congress in Holland where I am meeting and hearing from many hugely inspirational people who have to work with incredibly complex rulebooks and still manage to be creative, highly effective and in some cases, very charming. So far no spaceships, but there is time.

Until next time.

 

 

Australia, Business Strategy, Corporate sponsorship, fundraising, Not for Profit Sector, partnerships, philanthropy, Strategic Planning, Uncategorized

Can $50million ever be a bad thing?

Pamela Sutton-Legaud CFRE

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Much has been made of a recent philanthropic gift of $50m to an Australian university to set up a scholarship fund. Quite right, you might say.

The donation secured Graham and Louise Tuckwell the honour of having made the largest philanthropic donation to an Australian university by individuals.

The couple funded 25 scholarships of $20,000 each per annum for up to 5 years.

An interesting question is whether the University would have set up the scholarships without this impressive and very generous donation – ie was the scholarship a strategic or donor driven decision? Many organisations struggle with these questions. Should we accept a large gift which we otherwise would not receive unless we tie the gift to the donor’s specific requirements? It is not suggested that in this case the university in question had this dilemma – but is there ever a time when $50m is a bad thing?

Most not-for-profit organisations can cite examples of where trying to deliver on a donor request in order to secure a large gift has cost them more than if they hadn’t accepted the funds in the first place.

When a business (and non profit or otherwise we are all businesses) tries to deliver solely what is of interest to the donor, time and resources are taken away from other strategic priorities. Staff can become disheartened when they see their core needs being unmet while other ‘less urgent’ projects taking priority.

How do we avoid these situations and put ourselves in the best possible position to accept a generous gift AND improve our capacity to deliver on our core values and deliverables? I would suggest 3 things:

1. Be willing to have a transparent and honest discussion with the potential donor about what will really help your organisation deliver on its mission. What do you really need to move the organisation forward and meet the supporter’s philanthropic objectives?

2. Have a plan around your vision – if you can’t share your strategic vision with potential supporters how can they fund your highest priorities? If you don’t know, neither will they. Create a strategic plan with room for growth – show how you would put their funds to the best possible use.

3. Be willing to say no. Or to be more positive, be willing to say ‘yes’ to the gifts that will push you and your organisation along on its journey. Yes, you must always be flexible and you should know where the line is.

I wish all organisations the very best of luck and good fortune in their fundraising and hope their planning is going well for the next financial year. May another multi-million donation be just around the corner. Make sure you’re ready to say ‘Yes’ to it.

Read more about the donation here at the excellent Fundraising & Philanthropy Magazine http://www.fpmagazine.com.au/50-million-donation-for-australian-national-university-316794/