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Income Generation Strategy 2012 - 2015 www.demelza.org.uk

Income Generation Strategy

2012 - 2015

Income Generation Strategy 2012 - 2015 www.demelza.org.uk
Income Generation Strategy 2012 - 2015 www.demelza.org.uk
Income Generation Strategy 2012 - 2015 www.demelza.org.uk

www.demelza.org.uk

Income Generation Strategy 2012 - 2015 page 2 1. Executive Summary page 2 2. Strategic

Income Generation Strategy

2012 - 2015

page 2

1. Executive Summary

page 2

2. Strategic Intent

page 2

3. Context

page 4

4. Income History

page 5

5. Dependencies

page 6

6. Financial Forecast

page 7-17

7. Action plans

• Partnerships

• Community

• Events

• Individuals

page 18-21

8. Trading

• Retail

• Lottery

page 22

9. Marketing and Communications

page 23

10. Products and Campaigns

page 24

11. PR

page 25

12. Conclusion

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page 23 10. Products and Campaigns page 24 11. PR page 25 12. Conclusion www.demelza.org.uk 1

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1.
1.

Income Generation Strategy

2012 - 2015

Executive Summary

1. Income Generation Strategy 2012 - 2015 Executive Summary Terms of Reference: The strategy provides an

Terms of Reference:

The strategy provides an analysis and evaluation of the current and prospective situation for Income Generation together with recommendations to improve income across both the fundraising and trading arms of the Charity.

The focus for the coming 3 years is to build sustainable income by recruiting new donors, developing and retaining the donors the charity already has through improving the customer care service to donors.

2. Our Strategic Intent

The organisation has set out 8 key areas of focus for the next 3 years. Of these, 4 have the most relevance to income generation:

• Strategic Intent 2: Raise sustainable funds and use them wisely’

• Strategic Intent 3: Achieve growth as defined by the number of people we help, the intensity of care required and the equality of access the service’.

• Strategic Intent 7: Innovative in our fundraising activity and opportunistic in raising funds outside of area.

• Strategic Intent 8: Develop the excellence of the volunteers, staff and trustees.

Demelza will diversify activity and secure sustainable funding sources by:

• Investing time and resource into research and analysis.

• Developing and trialling innovative fundraising activities.

• Developing a stronger profile in West Kent, SEL and E Sussex for the recruitment of new donors, using an integrated planning approach.

• Investigating the formation of a social enterprise in lottery or elsewhere.

• Developing and incubating new ideas to find the ‘next big thing’ in fundraising at Demelza.

3.Context

Since 2010 much has been achieved in laying the foundations for growth in fundraising. These achievements include:

• Cleansing and improving the Donorflex database and training staff on its use.

• Launching a new website and building social networks through Facebook and Twitter.

• Developing improved branding and more consistent design work, making communications more professional.

• Opening 6 new shops, refurbishing 6 older shops, launching a new on line shop and relocating to a new distribution centre.

• Running a successful Capital Appeal and developing a major donor network of 50 individuals.

• Developing new fundraising events, including Music on the Hill, Pooches on the Prom and the Twilight Walk.

• Establishing a direct marketing programme with a ROI of 2:1.

• Introducing the Fundraising Standards Board code of practice.

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Income Generation Strategy 2012 - 2015 To achieve these objectives this strategy focuses on key

Income Generation Strategy

2012 - 2015

To achieve these objectives this strategy focuses on key priority areas for fundraising:

this strategy focuses on key priority areas for fundraising: Priority Actions By whom Donor acquisition and
Priority Actions By whom Donor acquisition and development Raising awareness and recognition across the region
Priority
Actions
By whom
Donor acquisition
and development
Raising awareness and recognition across the region
Marketing
Develop new
All staff
income streams
Through the ‘hothouse group’, social enterprise and major donors.
Looking for the ‘next big thing’ and fundraising in new territories.
Supporter care
All staff
service and
Looking at the ‘donor journey’. Creating a loyal donor base and
ensuring they are properly recognised for support
retention
Developing people
Introducing project management of key activities and
becoming more target driven.
Management
Investing in our Income Generation team.
Planning, evaluation and monitoring.

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Income Generation Strategy 2012 - 2015 4. Income History The table below shows income over

Income Generation Strategy

2012 - 2015

4. Income History

The table below shows income over the past 7 years. Comparisons between years are hard to make due to varying factors of capital appeals, one off donations and fluctuations in legacy income.

one off donations and fluctuations in legacy income. Fundraising 2005/06 2006/07 2007/08 2008/09 09/10
Fundraising 2005/06 2006/07 2007/08 2008/09 09/10 10/11 11/12 £000’s forecast Community £2,017 £2,833
Fundraising
2005/06
2006/07
2007/08
2008/09
09/10
10/11
11/12
£000’s
forecast
Community
£2,017
£2,833
£2,023
£2,810
£1,400
£1,130
£917
Corporate
£1,201
£891
£800
Individuals
£492
£669
Major donors
£750
£153
Total
Corp, comm
£1,902
£2,833
£2,023
£3,560
£2,601
£2,556
£2,539
individuals
Events
£476
£575
£553
£322
£357
£180
£218
Grants
£138
£354
£524
£451
£486
£273
£258
Legacies
£1,013
£634
£226
£785
£456
£2,029
£1,100
Total VFR
£3,643
£4,396
£3,326
£5,118
£3,898
£5,039
£4,115
Capital appeal
£53
£1,436
£197
£751
£600
£28
Total Income
£3,643
£4,449
£4,762
£5,315
£4,649
£5,640
£4,143

• In 2008/09 Damien Hirst made a donation of £750k.

• 2010/11 saw a large legacy year with £2m income, £400K of which was accrued out of 2011/12

• Grants income benefitted from a £270K donation from Goldman Sachs

Gives in 2009/10.

• Event income has declined over the years but the very significant drop in 10/11 was due to the ball being allocated to the capital appeal (£80K).

• The significant drop in total income from 2010/11 to 2011/12 is due to a £700k drop in forecast legacy income.

There is some evidence that the underlying trend in community and corporate (which is now sub divided into individuals and major donors) shows a decrease post recession of 2008. Investment in individual and major donor fundraising has enabled us to stem this decline in 2011/12 but the income is still not comparable to pre -recession levels.

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5. Dependencies Income Generation Strategy 2012 - 2015 Finance There will be increasing need for

5. Dependencies

Income Generation Strategy

2012 - 2015

5. Dependencies Income Generation Strategy 2012 - 2015 Finance There will be increasing need for timely

Finance There will be increasing need for timely accurate income and expenditure reporting to enable the fundraisers to track and forecast income and costs. The charity rely on the finance team for swift banking of income and timely payment of invoices, and need support from finance in budgeting income forecasting and financial modelling, especially when putting business cases together for new activity and when trying to predict income.

Care Fundraisers and Care staff need to have a close and intimate knowledge of each other’s work in order that we can effectively engage and communicate with donors and can raise the right funds to pay for the services we deliver. There is a need for up to date stories and anecdotes to share with the public and also a need to know the impact and outcomes that the Hospice delivers for children so these can be shared with confidence with donors. Supporters increasingly want to be close to the work and want to participate in helping in deliver Demelza’s mission. This means the fundraisers need access to the Care teams and to children and families, in person and virtually through training, reports and updates.

person and virtually through training, reports and updates. HR The people strategy needs to be supported

HR The people strategy needs to be supported by HR whose expertise in the law, recruitment and development is invaluable, and the IG department continue to work closely to recruit and support volunteers.

Investment Income will grow over the next 3 years but growth will only come if investing in fundraising and retail. Demelza will be seeking investment from the reserves to support donor acquisition work, research and analysis, new shops and refurbishments and brand development. There will also be investment in events where we will need seed funding to establish events with a view to seeing a slower return but at a higher net value.

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Income Generation Strategy 2012 - 2015 6. Financial Forecast 2012/13 2013/14 2013/14 Community Small Growth

Income Generation Strategy

2012 - 2015

6. Financial Forecast

Income Generation Strategy 2012 - 2015 6. Financial Forecast 2012/13 2013/14 2013/14 Community Small Growth Flat
2012/13 2013/14 2013/14 Community Small Growth Flat Flat Individuals Growth Growth Growth Partnerships Flat
2012/13
2013/14
2013/14
Community
Small Growth
Flat
Flat
Individuals
Growth
Growth
Growth
Partnerships
Flat
Small Growth
Growth
Events
Small Growth
Flat
Growth
Legacies
Flat
Flat
Growth
Trusts
Growth
Flat
Flat
Total VFR
Growth
Growth
Growth
Retail
3.0%
5.0%
5.0%
Lottery
Growth
Flat
Flat
The above table shows where growth will come from over the next 3
years. The total value of income will increase over 3 years by £1m.

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7. Action Plans
7. Action Plans

Income Generation Strategy

2012 - 2015

Partnerships Demelza created a 'Partnerships' team in 2011 in response to a growing focus on philanthropy fundraising and high value donor stewardship. Private philanthropic giving is a growing market and has huge potential for Demelza in that to date major donors have not been proactively targeted for revenue fundraising. By bringing all high value fundraising together, there is an opportunity to improve the way partnerships are account managed. Demelza can now develop focused products to target corporate and high net worth individuals such as 'Pay for a Day', and establish a portfolio of high end events, for both fundraising and stewardship purposes and can begin to tap into peer to peer major gift fundraising by opening up networks, developing fundraising committees and engaging Demelza's vice presidents.

The Partnerships Team aims are to:

• Leverage existing high value relationships and supporters.

• Develop new high value and corporate relationships and supporters.

• Develop new fundraising products and events to engage wealthier supporters and

corporates.

• Deliver high levels of service, stewardship and account management in return for high value donations.

Corporate Partnerships:

The department aim to initiate, develop and retain relationships with businesses that maximise net income for Demelza and where feasible and desirable to generate additional opportunities and benefits to both parties. Companies are committed to continuing and growing charity partnerships and investment is forecast to increase 1 .

However, corporate / charity partnerships need to be regarded not just from a financial perspective, but in terms of the broader value that can be gained by both parties. Working in ‘partnership with these businesses is vital to keep them engaged with Demelza over the longer term, and the relationship needs to be on a mutually beneficial front.

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with Demelza over the longer term, and the relationship needs to be on a mutually beneficial

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Income Generation Strategy 2012 - 2015 A large % of corporate support at Demelza is

Income Generation Strategy

2012 - 2015

A large % of corporate support at Demelza is from medium sized enterprises. It is important for companies that they can achieve a bigger impact at Demelza, than aligning themselves alongside a multinational brand charity, where they risk getting lost within the myriad of corporate-charity partnerships. A relationship with Demelza allows then to be more dynamic in achieving their social responsibility objectives.

Recent figures from the DSC show that the most generous companies give away an average of only 0.43% of their pre-tax profits in 2009/10, including Gifts in kind 2 . This support has moved from philanthropic donations to investment of resources, expertise and assets. Such a change of emphasis has been driven in the main, by the need for companies to be regarded as socially responsible and for more tangible business benefits to come out of such associations. This is not only because of stakeholder pressure but also because it now appears to make sound business sense with evidence of a link between business success and a corporate commitment to social responsibility.

Clearly, this is vital when looking at how corporates are approached and how relationships are developed with businesses supporting Demelza.

1 Source: C&E Corporate-NGO Partnerships Barometer, London, C&E Advisory Services

2 Lillya, 2011

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C&E Corporate-NGO Partnerships Barometer, London, C&E Advisory Services 2 Lillya, 2011 www.demelza.org.uk 8

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Income Generation Strategy 2012 - 2015 Aim Activity Yr 1 Yr 2 Yr 3 Measures
Income Generation Strategy
2012 - 2015
Aim
Activity
Yr 1
Yr 2
Yr 3
Measures and
outputs over 3 years
Maximise income and
support from existing
corporate supporters.
Staff fundraising, events,
gifts in kind and
employee volunteering.
• Maximise cross-selling of
Demelza products e.g.
events and Lottery.
• Increasing regular giving
through employees.
• Develop the Business
club to increase
membership.
• Increase average donation per
corporate to £750.
High donor retention.
Increase engagement and
retain support.
• Increase rolling 12 month
corporates on file to 750.
Work strategically with
corporates to align
Demelza with their
community investment
needs.
Improve evaluation and
feedback to businesses.
• Develop clear case for
support to provide
tangible model for
businesses to fundraise for.
• Developing employee
volunteering in line with
corporates, to help meet
their social responsibility
needs.
• and measure the social
impact.
• Increase in number of
employees volunteering and
converting to financial support.
Create an offer of
strong fundraising
campaigns.
• Go Dotty Launch and
market Pay 4 a Day to
Business supporters.
• Numbers of ‘Days’ sold to reach
10 per year in 3 years.
• Number Go Dotty partners and
value increases to achieve
£100k income across all of IG.
New business
Target new corporate
supporters in different
geographical areas and
target specific industry
sectors
e.g. pharmaceuticals.
• Developing cause-related
marketing and other
product licensing
initiatives.
• Maximise Gift in Kind
opportunities that can be
budget-relieving across the
charity.
• Targeting high level
partnerships – that could
lead to a step change in
profile and income.
• Win new partnerships.
development.
• Number and value of CRM
partnerships increase from 2 to 5
over 3 years.
• Increase sponsorship
opportunities for
corporates and develop
social sponsorship.

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Income Generation Strategy 2012 - 2015 Trusts and Foundations . Trusts at Demelza have performed

Income Generation Strategy

2012 - 2015

Income Generation Strategy 2012 - 2015 Trusts and Foundations . Trusts at Demelza have performed well

Trusts and Foundations. Trusts at Demelza have performed well this year, in spite of an increase in competition due to cuts in government funding to certain projects. Trusts are currently operating on a 1 in 4 hit rate.

Aim Activity Yr 1 Yr 2 Yr 3 Measures and outputs over 3 years Attract
Aim
Activity
Yr 1
Yr 2
Yr 3
Measures and outputs
over 3 years
Attract new funders to
Demelza.
Maximise grant applications
through research and using
directories of
trusts/foundations.
• Work with the corporate
team to look at specific
corporate foundations e.g.
Goldman Sachs Gives.
Develop new proposals for
new trusts and grants such
as Comic Relief.
• Work with major donor
fundraiser to identify
personal trusts and
foundations.
• Numbers of applications made.
• Work with the Kent
Community Foundation
to help private individuals
• Increase trust fundraiser’s
hours of work. Use grant
finder software.
to give through grants.
Increase value of grants
received.
High value and multi-year
funding packages
Improve funder relations to
maximize repeat donations.
• Work closely with the Care
team to ‘package up’
specific projects and
services to give tangible
funding proposals.
• Ensure strong evaluation
and reporting is provided
to funders regularly.
All trusts to visit the Hospice
or meet the employee (if
relevant) to show how their
money is being used
effectively.
• Average value of grant to
£10,000.
• Repeat funding and multi-year
grants awarded.
Increase hit rate of
applications.
Robust application process
and high quality proposal
writing.
• Actively seek feedback on
failed applications and
learn from our competitors
if they have had success
where we have not.
• Partner with Care staff to
develop funding
proposals.
• 1 in 4 hit rate target
(currently 1 in 5).

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Income Generation Strategy 2012 - 2015 Major donor fundraising Major donors are a recent area
Income Generation Strategy 2012 - 2015 Major donor fundraising Major donors are a recent area

Income Generation Strategy

2012 - 2015

Major donor fundraising Major donors are a recent area of fundraising development at Demelza, and proved successful in engaging donors for the Bricks and Water appeal. However, it is difficult to get donors involved without tangible projects for them to fund and this needs to be the focus when developing a stewardship plan. Major donor fundraising takes time to develop and is all about a face to face approach.

Aim Activity Yr 1 Yr 2 Yr 3 Measures and outputs over 3 years Develop
Aim
Activity
Yr 1
Yr 2
Yr 3
Measures and
outputs over 3 years
Develop the base of
potential major donors.
Research names and build
HNW networks.
• Use Donorflex to identify
high value prospects.
• Colder’ prospects –
buying in data from
• Build Peer networks –
including trustees and VPs.
• Number of prospects in the pool
increases from 50 to 100.
• Ask key supporters to assist
with identifying potential
donors.
prospecting agencies and
using online data research
tools.
• Peer to Peer major giving
programme developed.
• Donor pipeline to be defined to
include number of £5K + gifts.
• Work with the corporate
and trusts fundraisers to
ensure key prospects are
identified.
• Develop a prospect
pipeline.
• Develop a strong case for
support.
Increase engagement
and loyalty of major
donors.
Excellent stewardship to
forge close engagement
with the charity.
• Develop a bespoke
stewardship plan for each
prospect .
• Develop an ambassador
programme for key major
donors.
• 2 ‘Funding committees’
formed.
• Increase average gift from £2k to
£5k and target 20% repeat gifts.
• Package up activity into
attractive ‘asks’.
Develop prospecting
and stewardship
High end fundraising events
Prospecting events.
• Create events that
engage the specific
demographic being
targeted e.g. Ball, dinners,
and clay pigeon shoot
• Rolling calendar of events
in place.
• Peer to Peer fundraising
events.
• ROI for events (direct and indirect
income) 3 to 1 in year 1.
opportunities.
Stewardship and cultivation
events.
• Events across all 3 regions.
• Shorten lead times from first
contact to first gift (measures tbc)
Increase Celebrity
engagement.
Attract high profile support
to Demelza to attract press
and public attention.
• Produce a recruitment
and retention plan.
• Increase number and quality of
active Celebrities.
• Ensure celebrity supporters
are given specific
tasks/roles.
• All events have celebrity
endorsement.
• Invite celebs to support
key events.
• 2 new celebs on board.

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Income Generation Strategy 2012 - 2015 Legacies and In Memoriam Giving Legacy income at Demelza

Income Generation Strategy

2012 - 2015

Legacies and In Memoriam Giving Legacy income at Demelza came in at just over £2m in 2010/11 and has performed at over £1.m for the last 3 years. The UK legacy market is now worth £1.9 billion and currently provides around 13% of overall voluntary income (Legacy Foresight) Though there was a decline over the past two years of 3.5%, the prediction for legacies till 2015 shows growth.

of 3.5%, the prediction for legacies till 2015 shows growth. ‘In Memory’ gifts come into Demelza

‘In Memory’ gifts come into Demelza via three routes; a direct donation sent from the donor, a collection sent in by a relative or a collection undertaken on behalf of the family by the funeral director. ‘In Mem’ donations have grown and will raise £200k in 2011/12.

Aim Activity Yr 1 Yr 2 Yr 3 Measures and outputs over 3 years Increase
Aim
Activity
Yr 1
Yr 2
Yr 3
Measures and outputs
over 3 years
Increase number of
donors writing Demelza
in their Will.
Develop a plan of potential
legators to target.
• Comms to staff, volunteers,
key supporters and
committed donors, trustees,
patrons, families.
• Training ambassador
volunteers to give talks
and presentations to
prospective legacy
• Identify ‘legacy pledgers’
and create a comms
plan for them.
• Number of pledges and
notifications (number tbc).
• Average legacy value increases.
• Work with local solicitors to
promote will writing to a
potential new group of
legators and through Will
writing fortnight and
networking events.
donors in local
communities.
• Number of solictors engaged in will
writing fortnight up from 12 to 20.
• Monitor and track
pipeline and pledges to
improve forecasting.
• Increase research in to
possible legacies through
Smee & Ford.
Improve our branding
and marketing to
increase In Memory
donations and legacy
gifts.
Review marketing materials
and redesign marketing
collateral.
• Raise awareness of Demelza
through websites such as
Remember a Charity and
forging links with the Charities
Aid Foundation.
• Consider a Direct
Marketing strategy about
remembering Demelza in
a will.
• Focus groups and stakeholder
research.
• Increase in legacy and In Mem
income and average value.
• Legacy marketing pack to
be produced.
Solicit secondary In
Mem gifts.
Communication with In
Mem donors to develop an
emotional bond. Build
relationships with In Mem
donors on line.
• Develop specific supporter
journey for in Mem donors
with a bespoke thank you.
• 5% Conversion of in mem donation
to a direct supporter/donor.
• Promote Tribute funds
through websites such as
Just giving, Much Loved or
Facebook.

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Income Generation Strategy 2012 - 2015 Community Fundraising Community income was the last area to

Income Generation Strategy

2012 - 2015

Community Fundraising Community income was the last area to be impacted by the economy, but in 2011 the sector saw this income stream suffer from the ongoing and double dip recession. The result is that there are fewer activities happening for Demelza as communities switch loyalty to (perceived) more pressing or deserving causes, or the charity is having to share the proceeds with other charities or the income from previous 'banker' events has almost halved in value.

Social trends are also changing and Friends Groups have declined across the sector as lifestyles of the retired are now more likely to be focused on caring for grandchildren, saving money or even continuing to work to pay for future care homes or for the lucky few spending more time on leisure and holidays and less time in traditional community fundraising groups.

On the plus side, in 2010 there were some key community sectors being neglected by Demelza where income had declined over the years and these have been targeted and this has led to growth and renewed support.

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declined over the years and these have been targeted and this has led to growth and

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Income Generation Strategy

2012 - 2015

Income Generation Strategy 2012 - 2015 Aim Activity Yr 1 Yr 2 Yr 3 Measures and
Aim Activity Yr 1 Yr 2 Yr 3 Measures and outputs over 3 years Increase
Aim
Activity
Yr 1
Yr 2
Yr 3
Measures and
outputs over 3 years
Increase support from
the local communities
across the region.
Encourage supporters and
supporter groups to be self
sufficient and increase
beneficiary events across
the region.
Utilise the website in a
positive and professional
way.
• Launch Do It For Demelza.
• Formulate Common Interest
• Upgrade Fundraising literature
across the board.
Groups.
• Running Group/Demelza
• Number and average value of community
beneficiary events worth over £1000
increases.
• New Schools and Community
Fundraising packs.
Walkers.
• Hit rate and membership numbers on ‘Do it
• Secure a Mayoral charity of
• Go Dotty events.
the Year.
for Demelza’ site. 50 new supporter groups
in 3 years average value £1000.
• Increase number and average value of
- Schools: from 40 per month to 50 per
month. Average value from £320 to £450.
- Faith groups, from 20 per month to 30 per
month average value from £240 to £300.
- Membership groups from 11 a month to
15 and average value from £425 to
£500.
- SMEs increase in number and value.
Retain and develop
volunteers.
Work with Vol Services to
ensure high quality support
to volunteers.
• ‘Big Thank You’ community
event.
• Campaign to recruit younger
more active volunteers.
• Number of active FR volunteers increases.
• Age demographic reduces.
• Staff training and
• Shortages and gaps filled across all regions.
• 15th birthday celebrations.
• ‘Map’ the current volunteer
support across the regions.
development in volunteer
management.
• Develop specific roles for
volunteers such as schools
fundraising or legacy
ambassadors.
Improve the
effectiveness and
direction of Community
Fundraisers across the
Region.
‘Matrix Management’
Fundraisers will each have
specialist focus areas
based on target audiences
that will not be bound by
geography.
• Formulate a strategy for each
Specialism and each region.
• Pro-actively encourage
income generating events in
• Income per region increases.
• 3 to 1 ROI in each region.
• Develop centralised tools and
resources.
each area.
• KPIs achieved.
• Grow autonomy in the regions.
• Training and development.
• Cross team working to raise
• Target sign ups per fundraiser for
Demelza events.
• Recruit a fundraising assistant
in London and PT admin in
Kent.
profile in the regions.
• Map engagement across the
regions to highlight gaps and
• Set individual targets and KPIs
per region and per specialism.
opportunities.
• Improved liaison with Care
• Improved panning and review
processes.
teams and Trading teams.
• Shops as central ‘hubs’ to
• Ensure compliance with FRSB
code of conduct.
attract fundraising in the
community.

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Income Generation Strategy 2012 - 2015 Events Events income peaked at Demelza in 2006/07 at

Income Generation Strategy

2012 - 2015

Income Generation Strategy 2012 - 2015 Events Events income peaked at Demelza in 2006/07 at over

Events Events income peaked at Demelza in 2006/07 at over £575K but has seen annual declines since. It is hard to establish a pattern however, as events income has not been recorded consistently in the same place and some event income has been posted to the capital appeals, corporate activity and community beneficiary events. Going forward there will be 3 key event income streams:

• Community Beneficiary Events, those that Demelza does not initiate or have responsibility for, but are supported by the community fundraising team.

• Demelza Events, that are organised and controlled centrally and are paid for by the charity. (The Run, the Walk, other marathons, Pooches carol concerts etc) and this will include Open Challenge events where some account management and central coordination is needed (treks, skydives etc).

• Partnership events that are targeted at high net worth or corporate clients and are managed by the Partnerships team (Golf, the Ball, London Marathon)

Over the past 2 years there has been a review of the events calendar to better understand where return on investment is highest and increase visibility of costs including staff costs. As a result Demelza has begun to build up a portfolio of new running and challenge events, developed new events Pooches on the Prom and the Twilight Walk and held a successful Ball at the Savoy hotel. In 2011 Demelza were the joint beneficiaries of a music festival 'Music on the Hill' which made £50,000 for Demelza (before staff costs) and this will be repeated in 2013.

Events should be positioned as a 'service' to help deliver the strategic objectives of all Demelza income lines. For example, clearly outline the fundraising objectives and design an event/events to meet them. There is a clear need for cross organisational buy in to events and this will be easier if there are clear strategic goals to be achieved with each event. Different fundraising teams would be fully engaged in that event's promotion because they have a vested interest in its success. The charity will gain more by jointly fulfilling its over-riding objectives and the success of an event becomes more easily measurable if clear objectives are set before a plan is put in place.

The challenge with event fundraising is that participant numbers in mass participation events have been falling across the sector and average sponsorship value has also dropped by up to half. This means the charity is having to spend more on marketing events and seeing lower returns. There needs to be concentration on net return than ROI, spending more to earn more but and looking at UK challenge events where there has been growth, including skydives, treks and open runs.

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Income Generation Strategy 2012 - 2015 Aim Activity Yr 1 Yr 2 Yr 3 Measures
Income Generation Strategy
2012 - 2015
Aim
Activity
Yr 1
Yr 2
Yr 3
Measures and
outputs over 3 years
Review and refresh the
event portfolio.
Focus on target markets
then find the best event to
attract the right audience.
Remove Twilight walk and
• Alternative max pax event
• Full annual calendar of
replace with Go Dotty events
in
place of MOTH.
events that reach all
target audiences and
support the aims of
• New portfolio of events that are
successful and meet donor needs.
in
May.
Review and develop
‘Pooches’ concept.
Identify new ideas from the
hothouse meetings to pilot
as new events.
income generation
strategy.
• MOTH 3.
E
Sussex carol concert
venue secured.
MOTH fully resourced.
15th birthday event.
Increase participant
Pilot radio advertising.
• Leeds castle secured as
• Increase in participant numbers.
numbers.
Robust marketing plans and
budget in place.
a
venue for max pax
event.
• One max pax event to have 1000
participants.
Celebrity endorsement and
• Celeb support for all events.
a
‘hook’ for all events.
Regional and central teams
all targeted to recruit
participants.
Increase sponsorship
value.
Compelling messaging
linked to our work, with clear
cost examples in all
promotional materials.
Events to be linked to
thematic areas of Care
wherever possible.
Cross selling to event
participants.
• Text giving at max pax
events.
‘Badges’ for schools to
encourage sponsorship.
• Sponsorship ‘apps’.
• Average value increases from £40
to £60 for a run, other targets to be
set per event.
• Awards ceremonies.
Exploit Face book and on
line giving tools to the max.
• Convert 5% of participants to other
forms of giving or repeat eventers.
Incentivise sponsorship value
for corporate and groups.
Improved planning and
evaluation of events.
Effective project planning
and management, cost
Use Donorflex planning tools.
• Achieve budget for events.
tracking and post event
evaluation.
Track staff time and all
related costs.
• Achieve reasonable ROI as per
business cases.
Event plans and business
cases for all new and
existing events in place
each year.
• High quality event delivery and
supporter care.

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Income Generation Strategy

2012 - 2015

Income Generation Strategy 2012 - 2015 Individual Fundraising Demelza currently has a database of 38,000 names,

Individual Fundraising Demelza currently has a database of 38,000 names, including 23,000 Lottery Members. 8,690 active donors (donated in last 3 years) and 6,428 lapsed donors (donated between 3 and 6 years).

Cash donations from individuals will generate circa £300,000 in 2011/12 via online donations, unsolicited donations, Just Giving pages and direct mail response. Currently very few donors give regularly in the form of direct debit or standing order. Currently there are 430 direct debits and standing order donors who give an average of £11 a month.

Demelza has not considered face to face or 'street' fundraising at this time. Current trends in face to face recruitment are that whilst there are more sign ups than ever before (100,000 more people signed up via PFRA agents than the previous year, the second highest level in 10 years 3 ), attrition rates are high, the cost of recruitment is high and public opinion is often antagonistic. Some town councils have restricted the number of face to face fundraisers they allow on their high streets; some major charities (Oxfam, NSPCC) have canceled their face to face recruitment for the first time in many years. Demelza will continue to watch this trend and review its position annually.

Aim Activity Yr 1 Yr 2 Yr 3 Measures and outputs over 3 years Increase
Aim
Activity
Yr 1
Yr 2
Yr 3
Measures and
outputs over 3 years
Increase donor base of
individual givers.
Integrate postal, on line
and above the line
marketing with fundraising,
retail and lottery activity to
adopt a multi channel
approach to recruitment.
• Donor and supporter
acquisition through the
Revenue Campaign ‘The
Difference is Demelza’.
• Mailings.
• Shift from DM to on line, TV
• Buy cold data.
and telephone
• Increase base of regular givers
from 430 to 2,000+ over 3 years.
• Target retail gift aid, lottery
players and in mem
recruitment campaigns.
• Number and value cash donors
increases.
• Pilot DRTV.
donors and design a
• 2 Mailings.
supporter journey for them.
Increase response rates
or average donation
value from direct asks.
Gain insight to develop their
value and recruit more of
them.
Help donors participate in
our work through
campaigning and
storytelling as well as
fundraising.
• Develop a supporter
journey.
• Impact and outcome
reporting to donors to feed
• Make communications
personal wherever
possible.
back the difference they
make.
• Increase average regular gift from
£11 to £13 per month through
telephone upgrade campaigns.
• Strong case for support
and cost examples.
Conversion and cross
selling.
Break down the silos of the
donor structure and be
donor-centric in with the
selling approach.
• Telephone and email
upgrade campaigns for
regular givers to increase
their monthly gifts.
• Upgrades, conversion and
cross selling annually.
• Measure and improve lifetime
value of key donor groups.
3 Public Fundraising Regulatory Association annual report 2012

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8. Trading
8. Trading

Income Generation Strategy

2012 - 2015

Retail

Aim:

• Increase portfolio

The charity retail sector is buoyant with charity shop numbers growing considerably over the past 2 years and income growing. The weak economy has proved to be a favourable environment for the success of the charity retail proposition. The portfolio is now 19 shops and over the coming 3 years there is a plan for the net number of shops to rise to 24. By the end of 2013 the aim is to have 20 shops trading. There will be a review of the trading presence across the region and a plan of where to target new sites.

• Improve Retail Gift Aid Penetration percentage

The introduction of claiming gift aid was problematic in the early days but has now established itself with 11% of sales being gift aided. This is below where the charity would like it to be and the aim is for a higher GA penetration in the coming years after training and promotion across all shops.

• Standardise branding and presentation

Retail have started in 2012 a refurbishment program to bring all shop up to a consistent high standard

of presentation and retro fit older units.

• Monitor and reduce costs

Whilst income has grown, there has also been a significant increase in costs and as a result the contribution retail makes to the charity has not risen in line with sales growth.

• Proactively generate stock

The ongoing challenge for all charity retail is the consistent supply of quality stock. With rag prices continuing to increase there is growing competition for donated stock across both charities and commercial operators and supply is not keeping up with demand.

• Train and manage volunteers effectively

Volunteer numbers are sufficient but the age profile is older and there is a difficulty in trying to recruit new and younger volunteers for new shops.

www.demelza.org.uk

is older and there is a difficulty in trying to recruit new and younger volunteers for
is older and there is a difficulty in trying to recruit new and younger volunteers for

18

Aim
Aim
Aim Income Generation Strategy 2012 - 2015 Activity Yr 1 Yr 2 Yr 3 Measures and

Income Generation Strategy

2012 - 2015

Activity Yr 1 Yr 2 Yr 3 Measures and outputs over 3 years
Activity
Yr 1
Yr 2
Yr 3
Measures and
outputs over 3 years
Improve sales and profitability. Focus on operations, service, merchandising and training staff and volunteers to
Improve sales and
profitability.
Focus on operations,
service, merchandising and
training staff and volunteers
to increase return per foot
and profits per shop.
• Increase profitability by driving Average
Weekly Sales and Gift Aid contribution:
• Identify low profit shops for
disposal.
• AWS per shop to £1900.
• Benchmark our sales/profitability across
the region and sector.
• Acquire new shops in key areas.
• Profit per shop to be
agreed.
• Review pricing.
• Gift Aid penetration to 30%
in 3 years.
• Stock generation initiatives.
• All shops profitable.
• Promotional plan in place for each
season and event.
Improve customer
service and experience.
Customer and market
research identify what they
want and what needs to be
done to deliver to them.
• Work in partnership with other
departments to increase shops presence
as a community focal point.
• Continue to rebrand and update older
shops.
• Improve staff & volunteer
awareness of Demelza products
and services in liaison with other
departments.
• NVQ
/accredite
• All shops branded and
updated.
d training?
• Volunteer and staff training.
• Improve customer service and
merchandising standards.
• Bespoke Supporter
communications targeted at gift
aid sign ups.
• Gift Aid sales increase.
Improve operational
• Focus on efficiency and cost savings.
• Ongoing procedures reviewed
and quality standards agreed.
• Annual
efficiency.
Maximise contribution
through the smooth and
efficient management of
shops.
• Review systems and procedures.
Internal
• Infrastructure review of Retail.
• Invest in infrastructure to support
new shops.
Audit in
place.
• Profits increase
Y1 20%
Y2 25%
Y3 30%
• Clearance shops.
Add value to the stock
cycle.
Maximise income from
waste saving and recycling
Improve volume and
quality of donations.
• Car boot sales.
• Renegotiate rag prices.
• Rag bins in town centres without shops.
• Rag sales maintained but
increase in income from
recycling and other outlets.
• E bay selling.
• Phone and cartridge recycling
• New shops identified.
• New shops
Create a Portfolio
Strategy.
Review current presence
and map areas of growth
and opportunity across East
Sussex, Kent and SEL.
• Research and analysis of town
demographic.
• Number of shops tbc.
• Competitor surveys.
• Boutique/niche/furniture shops
identified.
opened.
• Cross team support to raise presence in
new areas prior to shop openings.
• Target locations identified.
• On line sales increase.
Develop E Commerce.
Increase on line shop sales.
• New web site.
• Develop database of on line
shoppers and develop a comms
plan to increase value.
• Affiliate
• Improved photography.
sites.
• Bespoke ranges on line.
• Virtual Gifts or On line wish list.
• Give as you Live partnerships.

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19

Income Generation Strategy

2012 - 2015

Income Generation Strategy 2012 - 2015 Lottery Demelza has successfully run a Society Lottery since 2001.

Lottery Demelza has successfully run a Society Lottery since 2001. The charity is registered with the Gambling Commission to run a society lottery and hold both licences for remote and non-remote gambling.

The Lottery membership is currently 22,400 playing weekly members. As such, Demelza is currently in the top four of Hospice Lotteries in the UK, of which there are 107 registered members, and are second in showing the largest net growth since May 2009. Growth is ongoing and part of the direct approach used to recruit potential lottery members by managing self employed direct Sales Advisors. The weekly attrition of membership is below 1% ongoing of total membership.

The weekly draw is done in house with registered software acknowledged by the Gambling Commission.

Aim Activity Yr 1 Yr 2 Yr 3 Measures and outputs over 3 years Increase
Aim
Activity
Yr 1
Yr 2
Yr 3
Measures and
outputs over 3 years
Increase player
numbers.
Continue on a path of
recruitment through sites
such as supermarkets and
events and sign people to
direct debit mandates.
• Focus on new territory
such as East Sussex.
• Target lottery recruitment
at less affluent areas and
• Door to door recruitment?
• 30,000 players by 2015.
• Cost to recruit remains at £11.
• Monitor non payers and
reengage where possible.
younger women.
• Attrition below 1% a month.
Increase player value.
Start to add value, if growth
slows, by shifting attention
to retaining and cross
selling to players, reducing
costs and targeting new
areas.
• Promote superdraw.
• Telephone Upgrade
• 5% response to other ‘asks’.
• DM campaign.
campaign.
• Weekly Superdraw players x 1000.
• Bespoke comms and
‘asks’ for lottery file.
• Once the player numbers
reach 28,000-30,000,
need to look at upgrading
and converting these
donors to other ways of
giving.
• Lottery contribution reaches £1m
in 3 years.
Develop new income
streams.
Scope feasibility of acting
as a bureau to other
charities (see below).
• 1 partner identified and
piloted.
• More partners identified.
• New income stream
established.
• £100k income from new business
initiatives.

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Income Generation Strategy 2012 - 2015 Lottery Bureau service The Lottery department plan to leverage

Income Generation Strategy

2012 - 2015

Lottery Bureau service

Income Generation Strategy 2012 - 2015 Lottery Bureau service The Lottery department plan to leverage its

The Lottery department plan to leverage its experience in lottery fundraising by supporting other charities and developing income through third parties.

Option one:

Pursue the opportunity to administer the set up and running of a lottery for the RNRM charity. A proposal was presented to the RNRM charity in Portsmouth earlier this year and this included a financial proposal on setting up a lottery, administering membership and holding a weekly draw. RNRM are still keen to pursue this option and the outcome of their next Trustee Board meeting will show if this is a possibility. The fact that they are a National Charity with a large donor base both of current and ex servicemen and families indicates that to achieve a profitable lottery membership would be short term to achieve.

Option Two:

Consider rebranding the lottery to one that would reach out and encourage other charities to join. This would work on the basis that any additional charities that join the branded lottery would benefit from Demelza’s assistance in them setting up and marketing their own lottery under one umbrella branded name. Each additional lottery members from the charities, as well as the ex Demelza lottery members, would enjoy the possibility of winning higher cash prizes as well as being marketed under the one umbrella name. Their individual lottery membership donations would still however be funding their own chosen charity.

Demelza would set a cost for administering each charity’s membership as well as a contribution of marketing costs. The benefit to the charities starting a lottery is that they would not have to provide a prize draw fund as this would continue to be provided by Demelza.

A balanced proposal on costs of running this and profits to new charities as well as the Rebranded Demelza Lottery would need to be provided.

Note:

It appears from research that the majority of charities that start a lottery, whether alone or through an umbrella charity, tend to stagnate once they have resourced their initial individual donor base for members.

Demelza’s strength lies in the fact that it has the experience in recruiting and managing self employed advisors, as well as

through direct store/events/corporate employees, town centre routes. There would obviously be an additional cost to the new charities wanting to pursue this route.

knowledge of capturing members

Collecting Pots

A pilot has been running for 6 months to develop distribution of cash collecting pots. There are two part time paid Sales Advisors to develop distribution and central

volunteer admin support. If successful this model will be rolled across the region with the aim of increasing income and improving service levels. The distributers will

be incentivised on the number of pots distributed by earning a % of the income. This will be a way to access new supporters through SMEs in areas where Demelza currently have low penetration (West Kent).

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Income Generation Strategy 2012 - 2015 9. Marketing and Communications In order to maximise marketing
Income Generation Strategy 2012 - 2015 9. Marketing and Communications In order to maximise marketing

Income Generation Strategy

2012 - 2015

9. Marketing and Communications

In order to maximise marketing impact, it is necessary to build our knowledge of donors and potential donors in terms of profile, awareness, motivations and understanding of what the charity does and also to get insights into why donors do or don’t support Demelza to inform branding and communications. This could lead to a brand review in 2014.

Aim Activity Yr 1 Yr 2 Yr 3 Measures and outputs over 3 years Increase
Aim
Activity
Yr 1
Yr 2
Yr 3
Measures and
outputs over 3 years
Increase understanding of
current, lapsed and
potential donors.
Research programme.
• Measure perception of
Demelza Brand.
• Brand review.
• Identify which rational and
emotional factors the
Demelza brand should
incorporate.
• Set up a route to
measure market share
and track awareness
levels.
• More informed branding,
messaging and communications
delivering greater impact.
Ensure effective planning
across all activities, events
and support
communications.
Develop annual planning
calendar.
• 12 month rolling plan.
• All Departments update
• Marketing support plans for
all activities.
and use.
• Improved internal communications
on planned activities.
• Evaluations recorded.
Ensure consistency across
all Brand communications.
Update and broaden the
current Brand guidelines.
Re-launch briefing process
and form.
• Provide template collateral
such as empty bellies and
presentations for all
departments.
• Brand review.
• Brand relaunch.
• Improved branding across all
communications.
Increase effectiveness of
online.
Drive traffic.
Promote website Offline.
Improve internal processes
for keeping the website up to
date, user friendly and
relevant.
• Develop the “Donate”
section of the site.
• Re-launch site.
• Donations direct to
• Automated
Demelza.
• Increased online sign ups and
donations and regular givers.
• Increase promotion of
online shop both online
and offline.
communications.
• More dynamic updating
of site.
Further embed Donorflex as
an effective business tool.
Continue training
programme across all users
to ensure we capture all
relevant data and keep the
data clean.
• Load up and run Donorflex
• Review database
• E-mail programme
10.
providers.
• Improved selections for mailings
across all groups.
• Add enhanced data to
Donorflex records such as
MOSAIC coding to
increase our targeting
ability.
• Advanced usage for
CRM.
Increase effectiveness of
Donorflex at delivering
income.
Develop suite of reports off
Donorflex that help to
support business planning.
• Set up Donorflex to support
effective implementation
of the supporter journey.
• Increased ROI for all activities.

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Income Generation Strategy 2012 - 2015 10. Products and Campaigns ‘Go Dotty’ - This is

Income Generation Strategy

2012 - 2015

10. Products and Campaigns

Generation Strategy 2012 - 2015 10. Products and Campaigns ‘Go Dotty’ - This is Demelza’s biggest

‘Go Dotty’ - This is Demelza’s biggest fundraising campaign of the year and runs through children’s hospice week. There is an established brand awareness of the campaign and it is enthusiastically supported across the region by corporates, schools, community groups and individuals. This campaign will continue to develop and intend to pilot a Go Dotty event as the focal point for the 2013 week. This event (a walk in dotty costume) will be targeted at schools, families, community groups and the mass public held at a key venue.

Share a Card - This raises £20,000 each year and will continue to be marketed to schools, groups, SMEs and individuals at Christmas.

Pay for a Day - This product will be launched in September 2012. It is a high value product primarily aimed at corporates and major donors to replace the failing ‘Adopt a Nurse’ product that has proven too expensive in the current economic climate. The price point is £6900 to pay for a full day of hospice services and donors are rewarded with special recognition and accreditation.

Demelza Business Club - This initiative will continue to be promoted as part of the portfolio of corporate engagement tools. High value partners will have use of the site for free, others will pay to be members and the site will be public facing to allow non-members to see its benefits before they join.

What’s That Pong? - This schools product has not had much take up in 2011 so will be reviewed and remarketed to leisure groups as well as schools and youth groups. A regional championship model will be developed with competitive fundraising and inter school challenges included in the campaign.

Revenue Campaign - An awareness and fundraising campaign targeted at individuals to encourage sign ups for regular giving, cash donations and major gifts to support Demelza running costs. Targeted across SEL, Kent and East Sussex using poster campaign, social networking, viral marketing and above the line press, radio and TV ads. Demelza will consider DRTV on regional channels or cold marketing mail shots to acquire new donors and raise awareness. A new strap line ‘The Difference is Demelza’ will be introduced to the logo and used as a call to action in our communications and fundraising activity.

‘Do it for Demelza’ - an online resource tool to encourage supporters to fundraise for Demelza. This is a product to replace the ‘Friends Group’ model which has seen dramatic declines in recent years. The password protected membership site is based on the Macmillan ‘Worlds greatest coffee morning’ model for recruiting fundraising groups which attracted 51,000 participants and raised £10m in 2011.

www.demelza.org.uk

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11. PR
11. PR

Income Generation Strategy

2012 - 2015

11. PR Income Generation Strategy 2012 - 2015 As a regional charity, Demelza enjoys media coverage

As a regional charity, Demelza enjoys media coverage locally, mainly from newspapers but also magazines, radio and occasionally local TV. The charity is most well-known in Kent but also get coverage in South East London and also East Sussex.

According to the press monitoring agency, Precise there are around 20 articles a month mentioning Demleza in the media and in the last financial year this equated to £653,000 worth of PR coverage. The target for this year is to increase this to over £1 million but more importantly to increase its effectiveness through ensuring it delivers key messages about Demelza to the right target audiences.

Aim Activity Yr 1 Yr 2 Yr 3 Measures and outputs over 3 years Increase
Aim
Activity
Yr 1
Yr 2
Yr 3
Measures and
outputs over 3 years
Increase value and
impact of media
coverage.
Develop and include key
messages in Press Releases.
• Include key messages in
PR stories.
• Celebrity support.
• Broaden media contacts.
• Increase in value of media
coverage.
Regional coverage.
• Nurture key media
channels.
• Increase in effectiveness of PR
delivering supporters.
• Monthly reporting.
Increase effectiveness
of social media.
Keep content up to date.
• Media training for key
personnel.
• Facebook likes increased.
• Twitter followers increased.
• Develop income routes
and monthly reports.
• PR Calendar
Relevant Information
base developed to
support
communications.
Bank of cost examples
developed.
• Increase Audio visual
content.
• Video diaries
• Mobile communications
• Easier to deliver
communications consistently.
Bank of family stories.

www.demelza.org.uk

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Income Generation Strategy 2012 - 2015 12. Conclusion Income Generation has never been tougher but

Income Generation Strategy

2012 - 2015

12. Conclusion

Income Generation Strategy 2012 - 2015 12. Conclusion Income Generation has never been tougher but there

Income Generation has never been tougher but there are still opportunities for Demelza to grow. Growth will come through improved understanding of donors, investment in recruitment of new supporters and improved donor support and re-engagement.

The charity needs to be confident and ambitious in spite of the tough economy and competition; and can grow and can win market share if people believe it, and are disciplined in how they focus their efforts and ‘think big’ when making decisions on investment, risk and innovation.

The Income generation department are in a ‘people business’ and must ensure that the team is developed and motivated as well as focussing on delivering excellent service to supporters.

is developed and motivated as well as focussing on delivering excellent service to supporters. www.demelza.org.uk 25

www.demelza.org.uk

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