Use the “C” word more in your in fundraising
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I’ve been working a lot recently on fundraising strategy with a range of agencies – from global ones like MSF and Human Rights Watch to UK ones like Trussell Trust and the Birmingham Museum.
The strategies we were discussing were very different and were designed to deliver outcomes at a different scale. But in each case I caused some discomfort by using the C word a lot. Well actually five versions of the C word, each involving a question.
Here are my top five C words. If you’re thinking about changing strategy consider using these more and asking yourself some associated questions:
Context
What does your environmental scan – PEST, SWOT, benchmarking, competitor analysis etc. – tell you about the opportunities to grow and the constraints?
Before taking action you need to explore the market you want to work in for whatever it is you want to do, such as the global humanitarian market, the UK HE market, or even Edinburgh’s cultural market.
And there are some further questions from that first one. Are there enough HNWI prospects with enough capacity to deliver your campaign target? Does the channel you want to use – DRTV/F2F – work in that setting? Does your cause have enough traction to generate support now, or do you need simple awareness before fundraising? You may know that legacy fundraising will grow substantially in the next decade. How ready are you for that?
Deciding honestly and objectively on your context and what it tells you about potential will help in make your plan robust. One word of caution though: don’t be afraid to explore what are called Blue Ocean options. Not sure what that is…? Read on here.
Competencies
Do you have the skills, knowledge and abilities to make any strategic change in your fundraising? Or if you don’t have them do you have the desire and time to acquire them?
Again, there are some follow-up detailed questions. What experience do you have or need to launch a major donor campaign? Do you know what is the best channel or channel mix to use to acquire young supporters? Do you have — or can you get — the awareness-raising, PR and publicity skills you need to underpin the change – and what else do you need to be good at to succeed? Exploring who is best in class in any given area will guide you. Just be aware that no-one can be good at everything. And beware too of the deadly phrase ‘best practice’ which is often simply code for average.
“Beware of the deadly phrase ‘best practice’ which is often simply code for average.”
Launching into an initiative without competencies, and to some extent capacity, will end in tears or burnout.
Competition
Who else is in the ‘space’ you’d like to occupy or explore, and how strong are they? You may be able to learn from these competitors if they are best in class. But don’t simply try and copy them. Identify your competitive advantage.
There are some further questions here too. Who else has a major donor campaign ‘on the go’ and what % of your potential prospects have they already got involved? Are any competitors more effective in the channel you want to use, and are there other channels available? Is another NGO or charity more closely associated with this issue – HIV/child rights/environment/poetry – than you are and so stronger in the minds of potential donors?
How could you gain a competitive edge? Look at how Save the Children distinguished themselves very successfully from Action Aid, Plan International, SoS Children’s Villages, UNICEF, etc. by making their proposition really, really simple.
Cash
Do you have enough capital to invest in the new strategic area? This refers to business capital… and also the ability to invest for the long term is a massive advantage.
This is a tough question. Have you costed all aspects of the major donor campaign – from funding prospect research to hiring senior staff? Do you have the £1M+ you need for the big DRTV campaign, and how long can you spend that amount for to get a result? Is another, larger NGO/charity able to outspend you and so maintain its dominance in the issue you want to make yours? Make sure you explore LTV (Life Time Value) and don’t become focused with RoI (Return On Investment), the shorter term metric that board members and CEOs seem very obsessed with.
“Don’t become focused with RoI (Return On Investment), the shorter-term metric board members and CEOs seem very obsessed with.”
Make sure you’ve a properly costed plan and then be prepared to invest for long enough to secure the results.
Commitment
This is really the killer question, and maybe the only one that really matters. (You could actually frame this under another C word: Culture.)
Does your senior team or your board appreciate the time and effort they need to give for, say, the major donor campaign? Do they (and maybe even you), appreciate the risks – financial and reputational – associated with the radical campaign effort and the channel you’ve chosen?
Think of the antipathy F2F arouses or the level of controversy the Just Stop Oil or Greenpeace’s campaigns have produced.
Are those key stakeholders happy to stake out a new ‘claim’ for an area of activity and re-orientate policy or service to ensure you deliver on the promise you’re making to donors?
Without commitment the rest will mean nothing, and that commitment has to start with you, your leadership and your board.
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Further reading
Five uncomfortable C words questions. Ask yourself the questions they raise. And if you can live with the answers then move to the more technical choice of how to change or reframe your strategy. For more on that try:
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Clare Segal, Director
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