2016 cause conference parker pike adding value to nonprofit proposals

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PARKER PIKE

Adding Value toNonprofit Proposals

™

18th Annual San Diego AMACause Conference

EveryoneStand up

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Try something newMay be uncomfortableToday...Think different

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Are we talking about philanthropy?

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SponsorshipsVs.

Partnerships

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SponsorshipsVs.

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18th Annual San Diego AMACause ConferenceTo help you today:

1. Show you WHYCorporate view2. Show you HOWHandouts to take home

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• It’s what companies want• It’s what media want• It’s your way to differentiate your proposals from 1,000’s of others !

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Return on Community Investment

• Expected from corporate funders• Whether nonprofit or new business

-- It’s still their money• Won’t consider funding

without ROCI

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Cause Marketing….Partnership Marketing….

•A Commercial relationship – 2 way•Marketing-based cooperative effort •Focus - profitability and competitive position for companies

•Focus - increased awareness and funding for non-profit organizations.

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Why? Because it works !•American Express•Statue of Liberty Renovation•Spent $14,000,000 in Advertising •Card usage up 26%•Powerful differentiator

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A New Normal•Increased competitive pressures•Unreliable government funding sources

•Competition for funding getting more sophisticated

•Considering new strategies

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Partnership Marketing… Good news• Nonprofits are desirable partners

• Our partnership is worth money• Our partnership could build volunteer resources, reach new customers, support Employee Engagement....

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Corporate View Survey10 San Diego CompaniesMind blowing information!!!

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2012 Corporate View SurveyPlease answer two questions regarding two proposals sent to your organization. The proposal is from ABC Nonprofit that does fit your giving guidelines.

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Corporate View SurveyIn both proposals, your financial support of $2,000 makes your organization the presenting sponsor at the nonprofit’s annual event supporting 400 high school students with needed technology resources for their classrooms.

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Participating companies•Barona•Luce Forward•Manpower Inc.•Stemedica•SDG&E•SD Business Journal•US Bank•Time Warner Cable (local & regional)•UPS Foundation

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Proposal 1 To thank you and recognize your organization’s support, we will provide the following:• Recognition in a promotional message - SD Business Journal. • Full page, color message in the event program.• Your logo on 4 main event banners.• Logo on nonprofit homepage of website for one month.• Inclusion of your promotional flyer - 1 direct member mailing Article and photo – your employees participating at event in eNewsletter.• Recognition in all materials, publicity and social media.

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Proposal 2Description Reach Value

• Recognition for company in the SD Business Journal, primary logo in ¼ pg. promo message. 45,000 readers $1,500• Full page, color message - event program. 3,000 attend/mbrs 750• Logo on 4 event banners. Banners 20’ long. 1,500 event attendees 250• Logo on homepage - website for 1 month. 5,000 web visitor 1,000• Inclusion of your flyer in 1 direct mailing to mbrs. 1,500 members 750• Article/photo – your employees participating - eNewsltr. 1,500 members 500• Recognition in all publicity. 100 media kits, logo on letterhead for 1 year, social media with 5 prtnrs. 25,000 viewers/readers 2,000producing 20,000 views & clicks), guaranteed recognition with 2 local media partners.Totals 82,500 $6,750Ask: $2,000

ROI for $2,000 investment approx. 3:1

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Corporate View Survey

Which proposal do you think companies prefer? (First question on survey.)

#1? #2?

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Corporate View Survey

Results:•Preference for #1……

1 company… (slight preference)•Preference for #2……

9 companies… (5 greatly - 4 slight)

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2012 Corporate View Survey

Second Question for companies:

______% of proposals that you receive that provide some form of reach and/or value information?

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Corporate View SurveyTrue Average of 10 companies:Only 11% provided reach/value

Take out the highest score (50%) and lowest (0%)....average is:Only 8% provided reach/value

.

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Which Means…..By following a few simple guidelines, your proposals can be…

of all nonprofit proposals today in San Diego.

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Corporate comments...WARNING

Please….for your safety and the safety of those around you….please remain seated during this next segment.

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Partnerships - Collaboration

(New Math)

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Corporate comments...

“Rarely do nonprofits offer any specific detail…which, of course, is helpful in determining whether or not the partnership is valuable.”

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Corporate comments

“More often than not, proposals look like #1. However, when presented side by side, #2 seems like they are more responsible and have taken an active interest in researching before submitting their proposal.”

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Corporate comments

“The more detailed the request…. the better.”

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Corporate comments“We get hit up for sponsorships like this multiple times per week.I’ve been with _______ for 12 years, and I don’t think I’ve ever seen a funding request that even attempts to quantify the ROI like option 2 does.”

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Corporate comments“We constantly evaluate proposals. Since we’re using advertising dollars, the reach and exposure is important.”“To be blunt, we’re still advertising—doing good is secondary!”

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Corporate comments“I greatly prefer #2. We want to see the ROI, and, more importantly, we want to know that the non-profit understands the corporate world enough to know that this ROI is valuable.

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Corporate comments

I would say roughly about 10% of all our proposals come in like proposal #2, but they are the first ones we look at, and quite frankly, they get priority.

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The bottom line

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Companies are looking for...VALUE

Financial dividends Social Dividends Employee Engagement Partnerships...not shortterm sponsorships

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ROCI (Investment) For companiesPositive brandingChange in consumer attitudesEmployee benefits, perksHigher sales... new target audience Leveraged advertisingVolunteer opportunities

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Benefits for NonprofitsSupport fundraising &new sourcesIncrease Volunteer baseIncrease membership/donor baseIncrease awareness & brandingCreate media partnershipsGenerate advertising, with no ad budget

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Nonprofit proposal evaluation

•Receive 1,000’s of proposals•Strategic from company perspective•Evaluation based meeting company guidelines, not your needs.

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12,300 nonprofits in SD•Have passionate talented people•Focused on a great mission

Not relevant unless we can…•Help company meet it’s mission•Provide tangible benefits from community and business perspective

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SDAMA 18th Annual Cause Conference

Low tech summary....It works !

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SDAMA 18th Annual Cause Conference(Handout One....)Step One: Resource auditAre you ready...or not?Is your board on board?

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SDAMA 18th Annual Cause Conference(Handout Two....)Step Two: Reach & Valuation WorksheetReal numbersEstimated dollar value

Is your board still on board?

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(Handout Three....)Step Three: Reach...show them your impactEstimated CPM (advertising equivalency)ROI...show them your value !

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Valuation criteriaRecognition in Your “Touch Points”

•Newsletters (Hardcopy & e-newsletters)•Websites & social media•Offices, building & events•Media coverage - newspaper, magazine•Board….volunteers….staff

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Nonprofit Organization AssetsRequesting financial support

Resource Reach ValueDirect MailWebsiteEventsTotalAsk: $10,000

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Nonprofit Organization AssetsRequesting financial support

Resource Reach ValueDirect MailWebsite

60,000300,000

$3,000$6,000Events

Total300,000660,000

$9,000$18,000

Ask: $10,000 Leveragefactor 2 to 1

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Resource Reach MediaDirect MailWebsite

60,000300,000

$3,000$6,000

EventsNewspaper

300,0001,000,000

$9,000$8,000

TelevisionTotal

1,000,0002,660,000

$15,000$41,000

Ask $10,000 Leveragefactor 4 to 1

Nonprofit Org.& Media Assets

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To add more HOW....I interviewed local corporate executives

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Here is what they said!What they would give in dollars $$$ for your ‘touch points.”Assumption...your organization matches corporate giving guidelines.

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San Diego Nonprofit Valuation Survey

Methodology Email survey 12 San Diego communication agencies & companies Asked to provide estimates Ave. time 25 minutes to complete 5x longer than time to review proposals

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Trends...Newspapers & Magazines

News stories 4 times more valuable than promotional spaceSpace value…about 1/3 ad rates

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Trends...Television & Radio

More value…longer the spotRadio slightly higher CPM“Live remotes” - very valuable

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Trends...Events & On-site

Printed Program...high CPMBanners…higher than other outdoor VIP & Golf tix….face value

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Trends...Promotions & Product

Ticket backs…valuable, directProduct sampling…2nd highest Product demo…strong + PR value

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Trends...Flyer Distribution

Higher than other print methodsHigh value when targets match

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Trends...Outdoor Advertising- SignageLow CPM, but huge reachLoved…or found worthlessGood brand reminder strategy

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Trends...Nonprofit Resources

Mobile vehicle…4x higher than traditional outdoorHomepage logo…ave. value

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Trends...Nonprofit NewslettersPrinted & mailed...same value as e-newsletterVery high CPM

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Trends... Direct Mail InsertHighest value, highest CPMCompares to reg. direct mail in costHighly targeted

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Trends...Recognition - “all event & program

materials and news releases”Wide range of responses…low-highNo ROI presented…worthlessBut still has ‘value’ with some people

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Social MediaHarder to understand-- variables

Guidelines:Facebook: Share $14....Like $8Twitter: Tweet $5.....Follow $2

Source: Cone Communications

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Thank youGood Marketing

Good Partnerships

2016 cause conference parker pike adding value to nonprofit proposals

Marketing

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