Saturday, June 10, 2017
Sunday, June 4, 2017
Understanding how to play the charity fundraising "Game"
Most people
have no clue how large the charity “Marketplace” truly is. I routinely ask new clients I meet with how
many charities do they think exist in the United States. 2,700?
10,000? 100,000? No – there are an unbelievable 104 Million
charities. If you then remember there are at 10 people involved with every charity, the number goes astronomical.
Synopsis:
There are 104
Million registered U.S. Non Profits.
Most popular charities realize that growth comes from opening “sub
charities” in other areas of the country, these “sub charities” are called “chapters.” Chapters not only spread the mission of the
charity but they also are a highly successful fundraising method – basically the
children of the charity feeding the mother.
With that in
mind – the 104 Million registered U.S. Non Profits grow to 150 million counting
the “Sub Charities” in the equation.
There are
two types of fundraisers:
a. Charity fundraiser – A registered
501(c)3 Non Profit – Basically a charity business.
b. Benefit fundraiser – When a community
comes together to hold a fundraiser for someone or something in order to help
them. The IRS allows for an unregistered
group to host one (1) fundraiser a year for a cause which is deemed non-taxed. These types of fundraisers are routinely for
an ill child, a storm damaged community or a family hit with an unseen tragedy. These are called “Benefits.” These “Benefit” fundraisers are not tracked
nor are they counted in the 104 million.
With the
above in mind, going from 104 million registered U.S. Non Profits, adding the sub-charities/chapters,
the number rises to 150 million fundraisers.
There are an untold number of Benefit fundraising events going on but we
know they are going on constantly.
Adding 50 million benefit fundraisers a year, the number rises to 200
million fundraising entities holding fundraising events each year. So how do you still out above the crowd?
200 Million Fundraising
entities in the United States, each needing to fundraise each year to keep
their mission going with only 50 states in the nation.
Fundraising competition
is ridiculous!!!
The “Fundraising
Myth”:
Most
charities or fundraisers simply have no idea about the above number. Each understandably believes that they are an
“Island amongst themselves.” They
believe that their charities mission or why they are hosting a benefit
fundraiser is more important than any charity in existence. They believe that everyone will want to be a
part of it and everyone will want to donate to their upcoming fundraiser. They believe that everyone will want to come
to their fundraiser. With that belief,
they advertise their fundraiser with the name of the charity because that is
what is going to attract people to their personal mission. They sit back and wait….and wait….and wait.
The “Donations
Myth”:
Many charities
believe that because their charity or benefit is so important and valuable,
that businesses and individuals will line up to donate. They also believe that if they ask,
businesses will donate high end items such as Harley Davidson motor cycles,
cars etc. If they do donate, they donate
items which will bring the retail price or higher because people will want to
give and pay above the retail price. They
believe that every business they approach will say “Well, what do you want or
what can we give you.” Same holds true
with sponsorship – companies will flip open their checkbook and say “Okay, how
about $10,000.00?”
The “Reality of Fundraising”:
Forget the
myth above – it’s entirely 100% false. Do
you remember the amount of charities I reported above? There are so many charities out there with
everyone screaming, paying for marketing etc. that everyone chooses a “Pet
Charity” or a charity they believe in and give to that one if any at all. The citizens of the United States are also
bombarded with charities asking for money.
Everywhere they go, they are asked to give. They become “numb” to being asked for money
which makes them numb to the mission of the charity so they tune it all
out. No matter where you turn, someone
has their hand out – right? Right. People are not paying attention. Here is the hardest part to understand and
comprehend – people don’t care because of this.
They just can’t – its reality.
The reality
is that people involved with charities “Hit Up” businesses constantly. Everyone
is asking for donations and businesses can only give so much – they have to
worry about keeping their own businesses afloat and their lights on. If they give, they give something they can
afford to give away – most likely something that is not selling in their
stores. But we as charities believe that
those items will bring full retail or above – this never ever happens.
Donated items
are only bringing 1/8 to 1/4 of retail across the county in any Silent or Live
Auction – People are looking for a deal and will not get anywhere near the full
retail value – here is why:
Local People
– Attending a Local Event – with items donated by local businesses = If your
guests wanted those items, they would go buy them, themselves.
No one
attends a charity event looking for a “Teeth Cleaning”, “Will preparation”, “Home
Inspection” or “Botox Treatments.” Items
like this sell for an embarrassing low amount of money.
Businesses
donate because they want a return on their money. They want “drivers” into their businesses.
The
Solution:
Understanding
all of the above, charities need to understand that it is vital to not act like
the “Norm.” They must plan their
fundraising events as events and not as fundraisers. They must stand outside the crowd. They also must have a plan to give businesses
what they want as well as their guests.
They must have a plan to utilize their collected donated items in a
platform which will bring much more than 1/8 to 1/4 of retail.
How does a
charity plan an event which will sell out?
How does a charity raise well above the norm, more than they have ever
raised? How do they stand out in a crowd
of millions?
If donated
items do not bring a lot of money in a Silent or Live Auction – then what should
they do?
Solution to
the Solution:
A charity
must spend money to make money. Fundraising
events must evolve, change year to year.
They must be exciting and fresh and be more about the event and less
about the charity. This will bring
people to your event and to your charities mission.
Are you
ready to grow and be more successful, if so, contact us today.
BW Unlimited Charity Fundraising is a North American charity fundraising leader in a convenient “One Stop Shop.” BW Unlimited Charity Fundraising is known across North America for planning fundraising
events which have ridiculous successful results – not only financial but charity
growth year after year. Contact us at www.BWUnlimited.com.
Thursday, June 1, 2017
Monday, May 15, 2017
The Founder – the story of “McDonalds” and how it relates to charities
For some time, I’ve been
wanting to see the movie the “Founder” which is the story about Ray Krok and
McDonalds. So the other night, my wife
and I rented it and sat back.
Going in, I thought it was
going to be the story about how an idea grew into such a massive scale. How one man single handedly built an empire –
a great business movie to watch and learn from.
But what was about is simply
this – if you don’t take your incredible idea and grow it or move it to the
next level, someone else will. What
happened in the story (which holds true in regard to charities), two (2)
brothers came up with the idea of McDonalds and how to serve their customers in
a “Speedy” constant way. They did not
have a lot of their menu, their goal was deliver quality quickly over quantity
in a time when “Drive Up’s with girls on Roller Skates” were the hit.
Well, the two McDonald
brothers did want to franchise their store.
Along came Ray Krok who could picture the ability to expand. The brothers fought it for all they were
worth, but Ray saw otherwise. He took
their idea, eventually figured out a way to improve it then overtook the
ownership making it what it is today – the most popular restaurant in the
world, feeding at least 1% of the worlds population on a daily basis, well
worth in the billions.
What Ray, with help, figured
out was they were in the “Real Estate” business, not food service. They bought the land that the restaurants sit
on and lease it to the franchisee. If
the Franchisee doesn’t follow his direction, he revokes the land lease. That easy.
The land then builds value and his profits go through the roof.
What should a charity learn
by this? Well, what I’ve been preaching
all along. It’s not about how great your
hamburgers are or your charity is, it’s about expansion, constantly evolving,
staying fresh and consistent. Its about
expansion in that your charity must do whatever it needs to do to constantly
grow, reach new people, new donor’s and spur growth.
If you stay the same, but
have a great idea, believe me…someone will “swoop” right in and steal your idea
and grow it. You will be just a memory
like the McDonald brothers are and were.
Seriously, do you even know their names?
Now – how does a charity
expand? By following these simple rules:
#1 – Your web presence must
be stellar – Your website is the face of your charity. If is not “Top Notch”, donors and sponsors
will go look, not be impressed and you will never know they were there snooping
around. It’s not like the old days when
people came to your office – they first go to your website.
#2 – Be the Dancing Monkey –
If people felt so strongly about your mission, you would have no need to host
fundraisers. There would be stacks of
checks in the mail every day. Give them
what they want – a fantastic event that attracts people to it first, then to
your charity.
#3 – There are no emotions in
business – People will steal your ideas.
Let me give you a very real life example. A long time ago, people use to attend my
events and literally video tape what we were doing and write down everything we
had displayed. But what they did not
know was the method or reason behind it.
They wanted to steal my ideas and do them on their own – they failed. Why did they fail? Let me tell you why, because they did not
know what the reasons were behind certain things. What I mean by there are no emotions in
business is this – people don’t care.
Everyone, every charity is out for themselves and themselves only.
#4 – How to expand – This takes
work. If you have the ability to expand
your charity into other states, do it.
Allow people from other areas in the country to get involved. Remember, you own the land (your charity),
they are just opening a store on it. You
control what goes on.
These are just ideas, notions
to consider. But like Ray Krok and the
McDonald brothers, if you don’t move forward with your idea, someone else will.
BW Unlimited Charity Fundraising is a North American Charity Fundraising Leader in a "One Stop Shop" convenient setting. If you would like our help, contact us at www.BWUnlimited.com or call us directly at 443 206 6121.
Sunday, May 14, 2017
Charity Fundraising “Flat Line” – The “Sophomoric Syndrome”
There is an old saying that
says “If you’re not moving forward, you’re moving backward.” This is incredibly true for charities that
experience success early. However, as
their charity ages, they tend to get set in their ways and lose track of reality.
Furthermore, no one likes to
hear the reality of things. Most
charities believe that their mission is the best and deserves the most but what
most don’t realize is this – people give because they want something in
return. Whether it is acknowledgement of
some kind, satisfaction or whatever, they want something.
The competition for charities
trying to fundraise is stiff. With over
104 Million charities in the United States, Non Profits need to be on their
game per se. They must grasp the plain
and simple fact that in order to attract people or supporters to their charity,
they need to be a “Dancing Monkey” of sorts.
Laying out the bait to gain the attention of people shopping the charity
superstore is extremely important. The
best way of accomplishing this – is to host an incredible event for people to
attend. Making it more about the event
and less about the charity and the fundraising aspect. Does this make sense? No it doesn’t but then why are BW Unlimited
events so large and always so successful?
Test Case #1: Recently, we were asked to help a charity
which had not been successful raising money for 6 years. However, when we came on board, we were given
“Carte Blanche” to do what we wanted and how we wanted. This charity had a very hard time getting
people to attend their small functions and within the 6 year period, they had
only raised a grand total of $6,000.00.
They did not question our
methods, in fact, we provided guidance and they followed it a “T.” Everyone prior to during the beginning
discussion stages, was very critical saying that it would never work, people
won’t come etc.
End result – 1,000 attendees
and close to $80,000.00 in profit in the bank “PRIOR TO” the event. People are excited about the charity and the
next event – which will be much larger and much more profitable.
However – this leads to the
next problem – a very real issue referred to as the “Sophomoric Syndrome.”
What is the “Sophomoric
Syndrome”? It’s when a group is
extremely successful and the following year, they lay back and think that last year’s
success will come rolling in without much work.
They don’t go after as many donations, they believe people will just buy
tickets because of last year, they don’t go after financial sponsors as hard…they
lay back and think people are going to come to them.
Oddly enough, you need to
work twice as hard. Remember the “Dancing
Monkey”? People get distracted and want
to be entertained. The event needs to
change and evolve to keep people interested and involved. The charity must GROW to stay relevant. They need to lay out the “Bait” thick and
keep attracting more and more to their event.
Their event has to grow bigger, become more impressive etc. Growing the committee is more important but
the committee too must understand the “Reality of Charity Fundraising.” Why people and businesses donate – because they
want something.
They must understand that
they are not the only Charity in existence, because there will be 100 charities
behind them asking them for donations and giving them what they want – the donor
can sit back and make demands to see who wants their money. This is reality folks.
Have you ever seen one of
those business graphs with profits and losses going up and down? Well the same holds true with a charity. Charities must think like a business and use
strategy to run it. They need to ask
themselves these questions:
#1 – “How do we grow and
become more profitable?”
#2 – “How do we stay more
relevant?”
#3 – “What can we do to
attract more people to us?”
#4 – “How can we compete in
such a competitive market place?”
And perhaps the most
important question….
#5 – “Are we doing this for
fun or do we want to do more, grow and become much more successful?”
Be realistic – ask yourselves
the above questions. How do you combat
the problem detailed above? Each year,
you need to start over, keep everyone engaged and excited about what lies
ahead. Get rid of any negativity and
grow your infrastructure. If not, this
is when the “Charity Flat Line” starts to happen. You can tell this is happening when donations
slow down.
Let’s be real for a minute –
do any of your charities walk out to the mailbox in the morning and find stacks
of checks waiting for you? No. That is why you must go nuts when it comes to
fundraising!!! You absolutely must work
even if you hire us – we will teach you how to stay relevant, how to stay
competitive but in the end, it’s up to you to ensure your pulse keeps beating.
Everything ladies and gentlemen
has a shelf life. Case in Point – there was
a very well-known Veterans charity with a very recognizable logo that just a
year or so ago everyone loved. Millions
upon millions of dollars poured into this charity but then they lost their
way. It became more about the charity
and marketing then it did about this mission.
People became very critical and before too long, investigations began,
news stories exposed them and now where are they? Gone.
Everything counts –
EVERYTHING. You must stay ahead of the
pace. Everything matters, your web
presence, your mission and your fundraising efforts. If not, your pulse will stop and your charity
will flat line. There are plenty of
examples of this.
BW Unlimited Charity
Fundraising is a charity fundraising leader in a “One Stop Shop” convenient
setting. We can help you and your
charity understand the competitive nature of charity fundraising and guide you
toward a bright future while helping you by planning, managing and hosting
highly successful charity fundraising events which will not only help you raise
the money you need but grow your charity in ways you could not have
predicted. Check out our website at www.BWUnlimited.com
or call us directly at 443 206 6121. We
would love to help you.
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