How One Nonprofit Realized Nearly 200% Over Fundraising Campaign Goal

Transcription

1 Turnkey Promotions Research: Volume 3 How One Nonprofit Realized Nearly 200% Over Fundraising Campaign Goal An analysis of a grassroots fundraising approach applied to a capital campaign.

2 Turnkey Promotions Research: Volume 3 Contents Executive Summary Capital vs. Event Fundraising Campaigns Campaign Methodology Program Results Conclusion

3 Turnkey Promotions Research: Page 1 Executive Summary In 2006, Katrina VanHuss, founder of Turnkey Promotions, began her quest to uncover the answer to one fundamental question: Do fundraiser incentive programs for nonprofit events work? She found a client with a significant sample size and volunteer data tracking ability to help her find an answer, but she quickly learned the more data and information she uncovered, the more questions and new discoveries she found. Her journey produced a number of studies conducted from Now, she is sharing her discoveries through a series* of white papers and case studies. This is the third in the series. The first white paper answers a fundamental question most CFOs and nonprofit managers ask: Does fundraiser desire for incentive gifts yield increased income? Her second paper explores the relationship between incentive program pre-event marketing and event income. Now, VanHuss/Turnkey Promotions tests incentive program best practices designed for use with event-based fundraising, like walks and runs, in a campaign with no culminating yearly event. In effect, Turnkey would be testing grassroots fundraising techniques in a capital campaign context. Now, VanHuss/Turnkey Promotions tests incentive program best practice designed for use with event-based fundraising, like walks and runs, in a campaign with no culminating yearly event. Incentive program best practices for fundraising events do successfully translate into a capital campaign. Her company worked with One Home Many Hopes, a small, grassroots organization that supports an orphanage in Kenya. The Breaking Ground campaign initially reached out to 1,670 contacts. Participation was virtual, meaning fundraising occurred primarily online. And the conclusion? Event-based, grassroots fundraising best practices did successfully translate into this non-event (Capital) campaign. In fact, the campaign exceeded the nonprofit s goal by nearly 200%. This finding may suggest that nontraditional techniques, in addition to traditional methods, may be a valid new strategy for capital fundraisers. This white paper describes the incentive program administered by Turnkey Promotions and overall results obtained for the One Home Many Hopes campaign. * This is the third in a series of white papers that documents research from If you would like to request a previous paper, or reserve a copy of our next release, please contact info@ turnkeywow.com.

4 Turnkey Promotions Research: Page 2 Capital vs. Event Fundraising Campaigns In September of 2009, VanHuss was approached by Jennifer Hopcroft, volunteer board member for One Home Many Hopes, a grassroots organization that supports a Kenyan orphanage. The organization had heard of Turnkey s campaigning/gift program methods in use on event-based grassroots fundraising. Though their audience was international and only connected virtually, they asked Turnkey to use the same techniques for their capital campaign to build a home for the orphans. VanHuss was intrigued. Her company typically builds fundraiser incentive programs within the context of a culminating walk, run, or ride within a community. Her programs are based on her gift redemption research and pre-event marketing statistics. She wondered, will those same tactics apply successfully to an online, and virtually worldwide, campaign with no culminating event? Could capital campaigning go grassroots? Capital Campaign Fundraising Approach Traditionally, a capital campaign targets individuals of means who will make significant contributions. Interactions are typically one on one asks. The ask is only for financial support. Average income is typically high; average number of asks is typically low. Large donations are often recognized in internal publications and/or through scholarship, endowment, or permanent installation in the donor s name. Capital Campaigns typically include campaigns to build education or institution buildings, etc. Grassroots Campaigns: Relay For Life Special Olympics Polar Plunge March of Dimes Walk for Babies Grassroots Event-Based Fundraising Approach (Best Practices) Grassroots fundraising typically targets a larger audience and anticipates more, smaller donations. The financial goaling of such events does not depend on singular, large donations but rather on the quantity of teams and individuals participating. Grassroots fundraising frequently employs a team-based structure, which means that some people not

5 Turnkey Promotions Research: Page 3 Capital vs. Event Fundraising Campaigns only give donations, but also act as organizers and centers of influence, bringing in other fundraisers to assist in the effort. Often, grassroots fundraising is organized around a culminating event, like a walk, ride, or run. Capital Campaign Grassroots Event (Best Practices) Typical Target Audience Affluent, older, previous donors Community of varying income levels Number of Asks Low High Type of Ask Financial support Fundraising support, participation in event as participant, organizer, volunteer Fundraising Strategy Donor Cultivation over time Key leaders defined, team-based infrastructure developed to recruit fundraisers and build funds Event-Based? No Yes Primary Marketing Tactics Direct mail, phone, personal Pre-event tactics, social (word relationship of mouth), Income Triggered Campaign (ITEC), fundraiser incentive program Recognition Internally through publications, Branded wearable or gift scholarships/endowments, meaningful to mission and installations (large donations), audience naming privileges This white paper demonstrates how a capital campaign successfully incorporated a grassroots fundraising strategy to exceed its fundraising goal.

6 Turnkey Promotions Research: Page 4 One Home Many Hopes, Breaking Ground Campaign: A Grassroots Approach Methodology The One Home Many Hopes (OHMH) organization defined its goal to be $70,000 enough to build a small structure for the Kenyan orphans the nonprofit supported. Marketing tactics included soliciting past donors by way of a virtual, online campaign. Like a traditional grassroots campaign, OHMH s campaign tactics also included developing a team-based structure that leveraged individual, online fundraising pages, internal social media tactics, and a proven fundraiser incentive program. For one month, starting October 21, 2009, individuals, small crews, and schools across the United States and the United Kingdom pooled their efforts together to raise funds. Team Fundraising Structure At the time of the campaign, OHMH had no paid staff, though key volunteer leadership was in place and easily defined. In total, the organization utilized three geographic volunteer leaders. Each regional leader was encouraged to recruit team leaders, who would recruit teams of 4 10 individuals to raise funds. The grassroots and peer to peer fundraising techniques allowed more individuals to make smaller asks or requests for donations, leading to higher dollars generated and a greater awareness of the campaign. The Study: Grassroots organization One Home Many Hopes Breaking Ground Campaign, Oct Jan There were two fundamental differences between the Breaking Ground Campaign and a traditional capital campaign: The campaign incorporated a team-based fundraising structure A fundraiser incentive program was developed to motivate the fundraising teams to higher levels.

7 Turnkey Promotions Research: Page 5 One Home Many Hopes, Breaking Ground Campaign: A Grassroots Approach Fundraiser Incentive Program After careful analysis of the nonprofit s mission, fundraising goal, and target audience, Turnkey Promotions developed a comprehensive pre- and post-event marketing strategy designed specifically to elevate fundraisers to higher levels. The strategy included recommending incentive gift levels and branded products that were meaningful to the target audience and represented the brand and the mission well. Products included a limited edition t-shirt, water bottle, laptop case, messenger bag, and fleece jacket for various fundraising levels. An Income Triggered Campaign (ITEC) was a key component of the overall incentive program. Income Triggered Campaign After the kickoff , fundraisers who created an online fundraising page received a welcome . Subsequently, fundraisers received an income triggered as they approached a new reward level. That trigger was set below the reward level and encouraged them to the next level with concise copy and images about the gift. campaign start: October, 2009 (1,670 addresses) Final January, 2010 (post campaign) Gift levels: $100, $500, $1,000, $2,500, $5,000 The results for the Breaking Ground campaign follow.

8 Turnkey Promotions Research: Page 6 One Home Many Hopes, Breaking Ground Campaign: Program Results Goal: $70,000 Final Income: $205,000 (Nearly 200% Over Goal) Amount Collected Online: $113,000 Gift Earners: 573 Gift redemptions: 192 Redemption Rate: 34% Total Expense to Income Ratio: 1.46% of Income T-Shirts 492 Earners 160 Redeemers Waterbottles 32 Earners 14 Redeemers Laptop Sleeves 24 Earners 11 Redeemers Research conclusion: YES, event-based grassroots fundraising efforts can work when there is no culminating event Messenger Bags 17 Earners 5 Redeemers Jackets 6 Earners 2 Redeemers The final income and low expense to income ratio leads Turnkey Promotions to assume that YES, event-based, grassroots fundraising best practices may be effectively applied to capital campaigns. The same, proven inclinations that drive income in event-based fundraising, namely personal recognition gained through online communications and receipt of logoimprinted gifts, work for virtual audiences who are geographically separated. This finding may suggest that nontraditional techniques, in addition to traditional methods, may be a valid new strategy for capital fundraisers. Intrigued by the increase in the use of social media to gain fundraising dollars and by such studies as The Next Generation * (Convio) The Next Generation of American Giving, A study on the multichannel preferences and charitable habits of Generation Y, Generation X, Baby Boomers and Matures, March 2010, by authors Bhagat, Loeb and Rovner.

9 Turnkey Promotions Research: Page 7 One Home Many Hopes, Breaking Ground Campaign: Program Results of American Giving* which confirms the effectiveness of peer to peer fundraising across generations, Turnkey Promotions is committed to documenting other capital campaign case studies that incorporate fundamental grassroots strategies.

10 Turnkey Promotions Research: Page 8 Conclusion Turnkey Promotions finds that the positive results of the One Home Many Hopes Breaking Ground Campaign demonstrates that best practices used for event-based, grassroots fundraising efforts can also work when there is no culminating event. The same inclinations that drive income in event-based fundraising, namely personal recognition gained through online communications and receipt of trophy items in the form of logo-imprinted gifts, work for virtual audiences who are geographically separated. The effectiveness of peer to peer fundraising, a fundamental component of the grassroots strategy, may have contributed to the success of this campaign. This finding may suggest that nontraditional techniques, in addition to traditional methods, may be a valid new strategy for capital fundraisers. Contact us today at [email protected] to reserve a copy of our next research study. Intrigued by this new trend in capital fundraising and by studies documenting peer to peer fundraising trends across generations*, Turnkey Promotions is currently administering several other grassroots capital campaigns as of this writing case study results to be published in the future. * (Convio) The Next Generation of American Giving, A study on the multichannel preferences and charitable habits of Generation Y, Generation X, Baby Boomers and Matures, March 2010, by authors Bhagat, Loeb & Rovner.

11 Turnkey Promotions Research: Volume 3 Contact Information Turnkey Promotions, Inc Rosedale Avenue Richmond, Virginia p e. [email protected] About Turnkey Promotions Turnkey is a 100% woman-owned corporation based in Richmond, Virginia. Since 1989, we have partnered with such organizations as the American Cancer Society, Special Olympics, Susan G. Komen, American Heart Association, Boys & Girls Clubs, National Psoriasis Foundation, and many others. We have developed a specific incentive program based on our nonprofit client research that significantly releases staff time and decreases event expense to income ratios; in fact, our programs have consistently delivered a 21-29% increase in revenue among studied fundraisers. Furthermore, our program offers the fundraiser a better experience. We are ready to take your fundraising to the next level. Contact us today to learn how to increase your fundraising revenue by as much as 29%. We re ready to take your fundraising to the next level. Contact us at or us at [email protected] today for more info kh