Fundraising Trends, Opportunities, and Challenges in a Changing World Daryl Upsall FInstF Chief Executive

Daryl Upsall FInstF www.darylupsall.com

© Daryl Upsall & Associates SL 1 欢迎 Huānyíng Wóshdę́ ęLolomá Yá'át’ééh keshhi

© Daryl Upsall & Associates SL 2 DARYL UPSALL FInstF • Senior international fundraiser with over 36 years of experience most of which at a director level. • Former International Director, Greenpeace International. Known for his leadership & innovation he pioneered digital fundraising and is a co-creator of what is known as face to face fundraising during the 1990s. • Led the “Votes for Freedom” election fundraising campaign for Nelson Mandela and the ANC…in his spare time. • Co-owns fundraising agencies in Spain, Colombia, Mexico and Peru. • Fellow of the UK Institute of Fundraising (UK) & former Vice-Chair, Association of Fundraising Professionals (USA) responsible for education & professional development.

© Daryl Upsall & Associates SL 3 THE DARYL UPSALL GROUP OF COMPANIES

Daryl Upsall Consulting International provides recruitment services to non profit organisations all over the world. dgtl is a specialist agency to help organisations make the most of opportunities in the digital world.

The Fundraising Company provides telephone fundraising services in Spain and generates more than 45,000 new donors annually.

International Fundraising provides face to face fundraising services in Spain, Italy, Portugal, Colombia, Mexico and Peru.

Global Jobs is the international recruitment portal for NPO professionals.

© Daryl Upsall & Associates SL 4 THE DARYL UPSALL GROUP OF COMPANIES

Daryl Upsall Consulting International provides recruitment services to non profit organisations all over the world. dgtl is a specialist agency to help organisations make the most of opportunities in the digital world.

The Fundraising Company provides telephone fundraising services in Spain and generates more than 45,000 new donors annually.

International Fundraising provides face to face fundraising services in Spain, Italy, Portugal, Colombia, Mexico and Peru.

Global Charity Jobs is the international recruitment portal for NPO professionals.

© Daryl Upsall & Associates SL 5 OUR CLIENTS: INTERNATIONAL HQS

We have worked with over 300 organisations worldwide. Our major consulting clients include:

We have worked with UN agencies at the international and national level including:

© Daryl Upsall & Associates SL 6 THE CONTEXT FOR FUNDRAISING TODAY

© Daryl Upsall & Associates SL 7 WHERE IS FUNDRAISING TODAY?

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© Daryl Upsall & Associates SL 8 FUNDRAISING MARKET MATURITY 2018

Source: DUA 2018

© Daryl Upsall & Associates SL 9 LOOK OUTSIDE - EXTERNAL REVIEW - PESTEL

© Daryl Upsall & Associates SL 10 LOOK OUTSIDE - EXTERNAL REVIEW - PESTEL • Demographic changes – aging populations and donor bases • Decline in the middle class and their disposable incomes/rise or the “working poor” • Political uncertainty – Rise of nationalism and far right in Europe – Brexit – Breakdown of political consensus – Russia/China/Gulf States • Trade wars • Environmental challenges • Technological changes = opportunity or threat? © Daryl Upsall & Associates SL 11 ARE WE CHARITY ANGELS?

© Daryl Upsall & Associates SL 12 ….OR CHARITY DEVILS?

© Daryl Upsall & Associates SL 13 WHAT IS OVERHEAD? We have taught the public that overhead…including fundraising costs is evil

© Daryl Upsall & Associates SL 14 ACCOUNTABILITY How do you spend my ?

© Daryl Upsall & Associates SL 15 TRANSPARENCY

Donors want to know exactly how their donation is being spent

© Daryl Upsall & Associates SL 16 ➢Average American believes it’s reasonable for charities to spend 23 cents out of every dollar raised on fundraising and administrative costs. ➢They also believe that charities actually spend 37 cents out of every dollar raised on such costs.

Source: Where’d My Money Go, conducted by Grey Matter Research © Daryl Upsall & Associates SL 17 © Daryl Upsall & Associates SL 18 THE 0VERHEAD MYTH AND ITS DAMAGE TO FUNDRAISING

© Daryl Upsall & Associates SL 19 THE 0VERHEAD MYTH AND ITS DAMAGE TO FUNDRAISING

© Daryl Upsall & Associates SL 20 ETHICAL STANDARDS Protecting the fundraising sector worldwide

International Statement of Ethical Principles in Fundraising

“…to foster the growth of a worldwide fundraising community dedicated to accountability, transparency and effectiveness.”

Revised 5 July 2018, London UK

© Daryl Upsall & Associates SL 21 ETHICAL STANDARDS Protecting the fundraising sector worldwide International Statement of Ethical Principles in Fundraising

"To be ethical, any fundraiser anywhere has to work out what her duties are to her donors and what they are to her beneficiaries and ensure they are in balance,“ Ian MacQuillin, Director of the fundraising think tank Rogare

© Daryl Upsall & Associates SL 22 © Daryl Upsall & Associates SL 23 CHALLENGES FOR NON PROFIT LEADERSHIP KEY FINDINGS

1. Non profits are not focused enough on donor loyalty. 2. Need to be more proactive about creating an annual, in-depth strategic plan. 3. Work harder at earning the public trust 4. Be more selective in who they choose to sit on their board of directors.

© Daryl Upsall & Associates SL 24 CHALLENGES FOR NON PROFIT LEADERSHIP KEY FINDINGS

4. Not enough non profits are taking full advantage of the benefits of technology. 5. Need to better align mission, methods and resources 6. Better at balancing innovation and productivity 7. Having inconclusive deadlines and working with more complex business models 8. Moving beyond charity to systemic change

© Daryl Upsall & Associates SL 25 © Daryl Upsall & Associates SL 26 WHAT IS THE PROBLEM HERE?

“This study reveals that many nonprofit organizations are stuck in a vicious cycle that threatens their ability to raise the resources they need to succeed.”

https://www.compasspoint.org/underdeveloped

© Daryl Upsall & Associates SL 27 GLOBAL SHORTAGE OF FUNDRAISING LEADERSHIP

• NPOs and INPOs face a major challenge in identifying, hiring and retaining senior professionals fundraisers in many countries. • Problem severe in parts of Europe and emerging markets, especially in the Global South

© Daryl Upsall & Associates SL 28 CHALLENGE OF RECRUITING REAL DIVERSITY IN SENIOR FUNDRAISING STAFF

© Daryl Upsall & Associates SL 29 INDIVIDUAL GIVING

© Daryl Upsall & Associates SL 30 MASS INDIVIDUAL DONORS In developed fundraising markets:

Number of donors Average gift size Regularity of giving Donor selectiveness

© Daryl Upsall & Associates SL 31 TOO MUCH RELIANCE ON TOO FEW CHANNELS FOR NEW DONORS • Direct mail declining or gone in most markets and for under 60s • DRTV getting challenging • Crowdfunding on rise in some markets • Engagement/communitity fundraising like Trailwalker (Oxfam) • Lotteries growing importance • Digital and social media on the rise

© Daryl Upsall & Associates SL 32 MASS INDIVIDUAL DONORS In developed and medium mature fundraising markets: ➢ Increased competition for new donors and NPO compete for “market share” ➢ Aging demographics and donors approach to ➢ Need to listen to donors needs and take into account ➢ Old tools in decline faster than rise of new ➢ Supplier/volume shortages ➢ NPO/charities more challenging image problems ➢ Political/social uncertainty, less cohesion, rise of nationalism

© Daryl Upsall & Associates SL 33 TOO MUCH RELIANCE ON TOO FEW CHANNELS FOR NEW DONORS • Face to face is THE channel for new monthly donors in the world today • Digital growing but not fast enough • Social media lead generation and coversion growing • DRTV rarely excedes 5% of new donors • SMS limited to few markets in high volumes ( e.g,. Spain, UK)

© Daryl Upsall & Associates SL 34 FACE TO FACE FUNDRAISING

© Daryl Upsall & Associates SL 35 FACE TO FACE FUNDRAISING

© Daryl Upsall & Associates SL 36 WHAT IS THE REAL RETURN ON INVESTMENT ON FUNDRAISING?

© Daryl Upsall & Associates SL 37 FOCUS ON MONTHLY DONORS

© Daryl Upsall & Associates SL 38 FOCUS ON MONTHLY DONORS

© Daryl Upsall & Associates SL 39 STILL FOCUS ON DONOR VOLUME VERSUS QUALITY

© Daryl Upsall & Associates SL 40 AIM IS DONOR LIFETIME ENGAGEMENT

• Net income • Long-term relationships • Predictable income • Multiple products or engagements • Last gift is a legacy gift in their will…we hope.. Measured by: net lifetime value (LTV)

© Daryl Upsall & Associates SL 41 41 RETENTION Revisiting the “donor journey”:

Depends upon timing and quality of the “touch points” that the NPO builds into its donor communication cycles. These include: ➢ Welcome and thank you calls ➢ Thank you plus member get member calls ➢ Upgrading calls ➢ Cross selling communications, ➢ Invitations to one on one meetings or key donor events ➢ House visits to key donors ➢ Donor surveys and feedback loops etc.

© Daryl Upsall & Associates SL 42 42 DONOR JOURNEY….WHO IS REALLY DOING IT?

© Daryl Upsall & Associates SL 43 © Daryl Upsall & Associates SL 44 © Daryl Upsall & Associates SL 45 OVER 20% INCREASE IN EMAIL REVENUE GROWTH BY NPOS LAST TWO YEARS

© Daryl Upsall & & Associates Associates SL 46 46 © Daryl Upsall & Associates SL 47 NOTE SMALL ORGANISATIONS GETTING HIGHEST REVENUE PER 1000 MAILED

© Daryl Upsall && AssociatesAssociates SL 48 48 VIRTUAL REALITY Face to face becomes interesting…again

© Daryl Upsall & & Associates Associates SL 49 49 VIRTUAL REALITY Driving results

© Daryl Upsall && AssociatesAssociates SL 50 50 WWF VIRTUAL TIGER EXPERIENCE

© Daryl Upsall & & Associates Associates SL 51 51 WWF VIRTUAL TIGER EXPERIENCE

© Daryl Upsall && AssociatesAssociates SL 52 52 WWF VIRTUAL TIGER EXPERIENCE

© Daryl Upsall & & Associates Associates SL 53 53 IMPACT OF VIRTUAL REALITY ON RESULTS

“This is a first for street fundraising. These immensely powerful images transport you in an instant from an ordinary British high street to scenes of apocalyptic destruction in Aleppo. It’s shocking and it’s meant to be.”

Amnesty International UK innovations manager, Reuben Steains

© Daryl Upsall & Associates SL 54 © Daryl Upsall & Associates SL 55 SMS, INFO, CALL TO CONVERT TO MONTHLY GIFT

UK Example • Adverts : Outdoor, trains and washrooms. • Micro donation via SMS then • Telephone conversion to monthly giving

© Daryl Upsall & Associates SL 56 SMS ON THE STREET – TOP TIPS • Value of SMS gift has high correlation with regular giving conversion • Integration with call centre is vital (quick call-back increased conversion rates) • Make donors aware of follow-up call • Use of street theatre increases sign up response 57 © Daryl Upsall & Associates SL 57 SMS LEADING TOOL FOR LIVE EVENT FUNDRAISING

© Daryl Upsall && AssociatesAssociates SL 58 58 TV, SPORTS, EVENTS, RADIO, PRESS GENERATE SMS

© Daryl Upsall & & Associates Associates SL 59 59 SMS NEW DONOR/LEAD GENERATION UNICEF SPAIN

© Daryl Upsall & Associates SL 60 EUROPE (AND OTHER MARKETS) Lead generation & conversion via e-mail and telephone

DRIVERS

• Commercial lead generation vendors • New ‘channel’ with scope for real scalability • Potential for affordable volumes BARRIERS • ROI per donor can be higher because you’ve paid less

© Daryl Upsall & Associates SL 61 FRANCE Petitions on Facebook and conversion to monthly giving • Generating leads via Facebook and pushing petition. • Targeted to specific segments. • Conversion calls: ‘better ROI than street campaigns’ • So far: the more they spend, the more donors they recruit….. • Predictable conversion rate; scalable and good volumes!

© Daryl Upsall & Associates SL 62 IN HOUSE LEAD GENERATION World Animal Protection Netherlands / Denmark

• Targeting dog lovers • Campaign generated 32,000 leads, and 3,200 new regular givers (11%) • (fok means breed)

© Daryl Upsall && AssociatesAssociates SL 63 63 FACEBOOK LEAD GENERATION WWF STOP WILDLIFE CRIME

© Daryl Upsall & Associates SL 64 FACEBOOK ADVERTISING & PROFILE TARGETING TO FIND POTENTIAL SUPPORTERS OF THE ORGANISATION.

© Daryl Upsall & & Associates Associates SL 65 65 SENT DIRECTLY TO A LANDING PAGE WHERE THEY CAN SUPPORT THE ISSUE AND SIGN UP TO BE CONTACTED BY THE ORGANISATION

© Daryl Upsall & & Associates Associates SL 66 66 THEN PUT THEM ON A JOURNEY BASED ON THEIR BEHAVIOUR

© Daryl Upsall & & Associates Associates SL 67 67 CONVERT THEM, USING ONLINE TOOLS BUT ALSO TELEMARKETING…BASED ON BEHAVIOUR

© Daryl Upsall & & Associates Associates SL 68 68 FACEBOOK Donations directly on Facebook

© Daryl Upsall & & Associates Associates SL 69 69 FACEBOOK PayPal or Credit / Debit cards

© Daryl Upsall & & Associates Associates SL 70 70 FACEBOOK PERSONAL FUNDRAISERS

Personal Fundraisers allows people to raise money through desktops or mobiles for themselves, for friends or for someone or a cause that is not online.

© Daryl Upsall & & Associates Associates SL 71 71 FACEBOOK FUNDRAISER This is me!

© Daryl Upsall & & Associates Associates SL 72 72 FACEBOOK FUNDRAISER Target was $800… I raised $1620 in 10 days

© Daryl Upsall & Associates SL 73 Strictly confidential FACEBOOK LIVE EVENT FUNDRAISING -USA ACLU event to protect rights under President Trump

© Daryl Upsall & & Associates Associates SL 74 74 FACEBOOK LIVE EVENT FUNDRAISING - USA ACLU event to protect rights under President Trump

© Daryl Upsall & & Associates Associates SL 75 75 AmazonSmile Do you know about this?

© Daryl Upsall & & Associates Associates SL 76 76 AmazonSmile Do you know about this?

© Daryl Upsall & & Associates Associates SL 77 77 AmazonSmile Do you know about this?

© Daryl Upsall & & Associates Associates SL 78 78 CHINA – MAKING MASS DIGITAL WORK

• Alipay: China’s leading online payment solution • $25.3 billion sales within 24 hours • 1.48 billion payments processed through Alipay, and 90% were through mobile phone

© Daryl Upsall & Associates SL 79 CHINA – MAKING MASS DIGITAL WORK Alipay supporting environmental causes • For every environmental friendly payment via Alipay, you receive “green energy” for your trees. • Everyone is growing a forest! • 200 million people participated

• $3 million USD donated to SEE

© Daryl Upsall & Associates SL 80 CHINA WeChat & World of Art Brut Culture

• Individuals “buy” selected painting and share on their WeChat friends platform • Low value entry point 1 Yuan (USD 0.15) per painting • Raised over USD 2.4 million in 24 hours from the Chinese public • Most successful digital campaign this year.

© Daryl Upsall & Associates SL 81 NEAR FIELD TECHNOLOGY Transforming Hong Kong flagdays/street collections

http://www.youtube.com/watch?v=a9hPxsnBlik

© Daryl Upsall & & Associates Associates SL 82 82 NEAR FIELD TECHNOLOGY Transforming Hong Kong flagdays/street collections

© Daryl Upsall && AssociatesAssociates SL 83 83 BLUE CROSS: TAP DOGS The first elite canine fundraisers – Tap Dogs • Contactless payment via PayPal using a smartphone app via Bluetooth. • Chip and pin and swipe options are available; • Can provide receipts for a £2 donation and issue refunds if required. It is set up to take a £2 donation. • Receipts can be issued by email or a text message if required.

© Daryl Upsall & Associates SL 84 BITCOIN & BLOCKCHAIN FUNDRAISING Example - Made in Hungary

© Daryl Upsall & & Associates Associates SL 85 85 BITCOIN & BLOCKCHAIN FUNDRAISING Example - Made in Hungary

© Daryl Upsall & & Associates Associates SL 86 86 © Daryl Upsall & Associates SL 87 CROWDFUNDING EXAMPLE

© Daryl Upsall & & Associates Associates SL 88 88 ANY QUESTIONS ?

© Daryl Upsall & & Associates Associates SL 89 89 PEER TO PEER FUNDRAISING

© Daryl Upsall & & Associates Associates SL 90 90 PEER TO PEER FUNDRAISING

© Daryl Upsall & & Associates Associates SL 91 91 PEER TO PEER FUNDRAISING

© Daryl Upsall & & Associates Associates SL 92 92 RETHINKING CORPORATE PARTNERSHIPS

© Daryl Upsall & Associates SL 93 INTEGRATED CORPORATE PARTNERSHIPS AND STAFF ENGAGEMENT

© Daryl Upsall & Associates SL 94 INTEGRATED CORPORATE PARTNERSHIPS AND STAFF ENGAGEMENT

© Daryl Upsall & Associates SL 95 INTEGRATED CORPORATE PARTNERSHIPS AND STAFF ENGAGEMENT

© Daryl Upsall & Associates SL 96 CORPORATE SOCIAL RESPONSIBILITY Partnerships that really work IKEA and UNHCR

© Daryl Upsall & Associates SL 97 CORPORATE SOCIAL RESPONSIBILITY Partnerships that really work IKEA and UNHCR

© Daryl Upsall & Associates SL 98 CORPORATE SOCIAL RESPONSIBILITY Partnerships that really work IKEA and UNHCR

© Daryl Upsall & Associates SL 99 CORPORATE SOCIAL RESPONSIBILITY Partnerships that really work IKEA and UNHCR

© Daryl Upsall & Associates SL 100 MAXIMIZE DONOR VALUE: INTEGRATION WITH COMPANIES & FOUNDATIONS

• Lead generation • Face to face locations: with employees and retail • Payroll giving, Matching gifts

© Daryl Upsall & Associates SL 101 INTEGRATION WITH COMPANIES & FOUNDATIONS • Get the word out with corporate partners • Out-of-the-box thinking: Employee group sponsorship

© Daryl Upsall & Associates SL 102 © Daryl Upsall & Associates SL 103 GLOBAL FUNDRAISING LEADERS – NON-PROFIT TRENDS Big Ideas ✓ Funding Instability ✓ Measuring Impact ✓ Rise of the Donor-Advised Fund ✓ Less ‘I Think,’ More ‘I Know’ ✓ Integrated Online Social Fundraising ✓ Deeper (Not More) ✓ Retention Over Acquisition ✓ Behavioural Targeting, ✓ Email Holds Strong

© Daryl Upsall & Associates SL 104 GLOBAL FUNDRAISING LEADERS – NON-PROFIT TRENDS Tech, Digital and Online ✓Voice Intelligence Technology for Giving ✓The Next Generation of Virtual Reality ✓Leveraging Technology ✓Acquisition Intelligence ✓Greater Technological Efficiency ✓The Next Step for Social Media ✓Marketing Automation

© Daryl Upsall & Associates SL 105 5 HOT NONPROFIT TECH TRENDS FOR 2019 From the 2019 Nonprofit Technology Conference (19NTC) in Portland, Oregon

© Daryl Upsall & Associates SL 106 5 HOT NONPROFIT TECH TRENDS FOR 2019 From the 2019 Nonprofit Technology Conference (19NTC) in Portland, Oregon 1.Digital Wallets 2.Chatbots And Ai 3.Text Messaging 4. Donor Retention 5.Peer-based Giving

© Daryl Upsall & Associates SL 107 FUNDRAISING IN THE FUTURE?

© Daryl Upsall & Associates SL 108 © Daryl Upsall & Associates SL 109 © Daryl Upsall & Associates SL 110 Kwakwha askwali Ahéhee’ elahkwa

© Daryl Upsall & Associates SL 111 [email protected] www.darylupsall.com

© Daryl Upsall & Associates SL 112