Think of your Charity as a Business: Charity vs. "For Profit" companies

Recently, I had been thinking about a better way to explain to charities and those fundraising on how to understand who Sponsors are and why they sponsor, who the guests are and how to attract them and last but not least, who their volunteers are and their role.

Suddenly, I realized (based on a book and video by Dan Pallotta) that the best way would be in terms of a business but more importantly a store.  As soon as I could, I used this at a meeting with a client planning their fundraising event and it’s as if everyone there exactly understood much better.  In order to be successful, as Dan says, charities must think like a business in order to be competitive. 

In reality, a charity is a business and in fact, many of the tasks it does as a whole is business related.  So with that, here we go.

First, we are going to use these terms as if you were opening a business or a store:

• -         Event Planners are now known as “Business Consultants
• -         Sponsors and Donors are now known as “Investors and Vendors.”
• -         Guests are now known as “Customers.”
• -         Volunteers and the charity staff are now known as “Salesmen.”

In order to open a business and in this instance, we will think of it as a Store, let’s call it the “Charity Store.”  We first must understand our store opens only once a year (we only host one major fundraiser each year) and is only open (4) hours (the length of your event).  We only have (4) hours to make enough money to maintain our business throughout an entire year.

Many businesses owners understand that they must spend money to make money – however, in the charity sector, charities think exactly opposite to their detriment.  Do you understand and agree with this?  Or do you think getting everything for free is the successful way to operate?  Do you think the highly successful businesses in your area do the same as a charity?  Many Businesses owners understand that even though they want to open a business and be successful, they don’t understand as much as they should.  Retailers and Restaurant Owners often hire professional consultants who will come to their store and design it, train their staff on how to be successful sales people as well as develop a business plan.  They stay with the business as it ages to continue to improve it.  

Have you ever seen TV Shows such as “The Profit” or “Restaurant Takeover” or “Bar Takeover”?  The stars are consultants helping the businesses improve and often thrive.  Do you know how to properly plan a fundraiser?  Are you a highly successful fundraiser and are highly educated on the current trends of fundraising?  Do you know what makes Sponsors…sponsor at high levels?  Do you know how to entice your guests to make large donations and what makes them place high bids?  Do you understand all the aspects that go into a highly successful fundraiser?  Do you think you should higher an expert charity fundraiser or a Charity Fundraising Event Planner who is also an expert Charity Fundraiser?

If we are just starting our business or taking it to the next level, you will need Investors and Vendors.  In order to attract Investors, we first have to learn what the investor wants out of their investment.  What’s the best way to learn this?  By simply asking them.  Your “Investors (Sponsors)” will want Marketing as their primary concern.  Come up with a Marketing Plan for your Sponsors before you even approach them.  If you are already a well-established charity, your potential “Investors” is already right in front of you – your Vendor list.  What’s a Vendor you ask?  Open your business checkbook and see who you pay on a monthly basis.  Those vendors have been reaping the benefits of doing business with you for as long as you have been in business, approach them while reminding them how long you have been paying them and then tell them about your event and you would like them be a sponsor. 

In regard to your “Investors” being Donors, businesses which donate items, present them with your Marketing Plan for your Sponsors and Donors.  As with most charities, they simply take the items and whatever they make on selling them, that’s enough.  However, what will set you apart from the rest is that you truly “Care” about their business. 

If both your “Investors (Sponsors) & Vendors (Donated Items)” voice their opinion about when they donated to another charity and how it did not help them, ask them why?  What were they not happy with when they did?  Then ask them how you can best drive business to them and even further, how you can get them closer to purchasing items from their businesses.

Let’s talk about your business “Customers.”  Whenever a new business opens up in town, people automatically flock to it to check it out.  But we first must understand how they found out about the “Grand Opening.”  They found out through Marketing and Advertisement.  Do you think the business owner who wants to truly be financially successful only does a small amount of Marketing or Advertisement?  Absolutely not.  They hire top rated marketing companies who develop and advertising strategy.  They then develop commercials as well as beautifully designed signs, print ads and billboards.  They run their ads over and over and over again, nearly bombarding you their potential customers with the advertisement.  They feature all the great items they will have in their store and tell you how there are limited quantities available.  They spare no expense when it comes to advertisement and they don’t just advertise every once in a while, they repeat it over and over and over again until their store opens. 

As a charity planning a fundraiser, you must do exactly the same as a business hosting a Grand Opening.  You must develop a marketing strategy along with planning on how to best gain the attention of everyone in the area in which you reside or are located.  If done correctly, you will gather the attention of everyone in the entire country…but do you know how?  You also must have the correct marketing materials as well as made the correct decisions on what you need to have at your event in regard to the venue, menu and the items there for sale (to bid on).

 

Then, lets talk about your “Sales People” in your business – your volunteers.  If you sales people are not trained properly on how to be friendly and the art of the “Up Sell”, then your business will most likely flounder.  You have to find “Sales People” who are Rockstar’s !!!  The better sales people you have, the better you will ultimately perform.  They must be trained and also involved in your marketing strategy.  Switching over, are you volunteers Rockstar’s?  Are they trained Salesmen and Saleswomen?  Many times, charities just go after “People” without ever interviewing them about their sales skills.  You must have vibrant, friendly volunteers who are not afraid to talk, joke around and Sell Sell Sell. 

If you do it correctly, your business will thrive and you will make an enormous amount of profit.  However, if you do it incorrectly, doing things that contradict successful business practices, you will be closing your doors quickly. 

Charities MUST, absolutely MUST, adopt the same business practices as the “For Profit” sector in order to survive, be relevant and prosper.  They will never be able to fund their missions without successful fundraising.

If you would like help from the most well known charity fundraising Experts in North America, contact BW Unlimited Charity Fundraising at www.BWUnlimited.com or by calling 443.206.6121.  BW Unlimited Charity Fundraising is the only full scale charity fundraising event planning company in North America with a proven, successful track record and in business with 12 years.  Call us today.