This document provides examples of creative revenue generation strategies that nonprofits have used during difficult economic times. It begins with an overview of the current financial challenges facing nonprofits, including declining donations and increasing demand for services. The document then details various strategies such as engaging existing donors through monthly payment plans, thanking donors directly, leveraging volunteers, asking for donations in new ways like through YouTube videos, finding new prospects on LinkedIn, and collaborating with other nonprofits. Specific case studies are provided to illustrate how these strategies have been successfully implemented.

1. CREATIVE REVENUE
GENERATION
Laura Deaton
Credit: MSL Chief, Wikimedia Commons, original
work by Jim Boroch

2. Agenda
• The “Bad News” AKA
“The Need”
• The “Good News” AKA
“Creative Revenue
Generation Examples”
• Break
• “Your Turn” AKA Group
Brainstorming & Sharing
• “The New Normal” AKA
Plan B and Questions Photo Credit: Torredibabele, Wikimedia Commons

3. The Bad
News
AKA The Need

4. The Need
“…recent and extraordinary turbulence in the financial
markets…”
“…nonprofit and philanthropic sectors are not immune…”
Donors “…will need to make programming decisions that
balance commitments with costs…”
Nonprofits “…will need to craft creative strategies for
strengthening revenue and refocusing effort.”
[Letter from Michael Hoffman, CEO, Changing Our World, Inc. to Colleagues - October 2008]

5. Recent Surveys…
• May => Giving USA, 2008 giving 2%, first
decline in giving since 1987.
• June => Index of Nat’l FR performance, “Direct
response giving ” in Q1 2009.
• August => Johns Hopkins released findings
from April 2009 “sounding” of 363 orgs.

6. Johns Hopkins Sounding
“…All sources declining.”

7. More than half of responding nonprofits experienced:
• Increasing demands for more of their services;
• Escalating operating costs; and
• Decreasing revenues to meet the higher demands
and costs; and
More than a third of nonprofits have had to cut their
operations.
Source : National Council of Nonprofits Economic Stimulus and Recovery, Special Report 8, August 10, 2009.

8. A Perfect Storm
• 83% reported some level of
fiscal stress.
• ~40% considered said “severe”
or “very severe”
– 73% for theatres and orchestras
– 30% for those serving children
and aging families
• Particularly hard on mid-sized
orgs
http://www.ccss.jhu.edu/pdfs/LP_Communiques/LP_Communique_14.pdf

9. Impressive Resilience
• Those reporting “severe” or “very severe” lower now
than post 9/11 (37% vs. 51%)
• Except for arts orgs, majority reporting fiscal stress is
“minimal” or “moderate”.
• More than two-thirds “successful” or “very successful”
in coping.
• Nearly three-fourths of the organizations reported
being able to maintain or actually increase the number
of people they serve, and this was especially true of
service to vulnerable populations.
http://www.ccss.jhu.edu/pdfs/LP_Communiques/LP_Communique_14.pdf

10. A Range of Coping Strategies
• New or Expanded Fundraising efforts
• Stepping Up Marketing and Advocacy
• Belt Tightening

11. Photo Credit: Flickr: Herkie

12. The Good News
CREATIVE REVENUE GENERATION
Specific Examples
Photo: avmeier, wikimedia commons

13. Specific Examples
RETAINING EXISTING SUPPORTERS

14. Simple Strategies
– Monthly
Payment Plans
• College students: $5/month = $60
• Young adults: $10/month = $120
• Regular adult donors: $20 = $240
• “Major” donors: $100 = $1200

16. From Asking Properly: The Art of Creative Fundraising by George
Smith, © G. Smith/White Lion Press Limited.

17. From Asking Properly: The Art of Creative Fundraising by George
Smith, © G. Smith/White Lion Press Limited.

18. Photo Credit: Flickr:LongLiveRock
Specific Examples
ENGAGING DONORS DIRECTLY

19. Thank You Calls –
Covenant House
• Direct mail decline of
20%
• Decided to strengthen
connections
• Had youth call to thank
and invite to an open
house
• Twice as many people
came to take tours
• Size of gifts increased by
50%
http://online.wsj.com/article/SB124025204612335931.html
Flickr:Casie Yoder

20. Donor Roundtables

21. Specific Examples
MAKING EVENTS STILL WORK

22. http://www.crainsdetroit.com/article/20090615/EMAIL01/906159990#

24. Pittsburgh

25. Specific Examples
LEVERAGING VOLUNTEERS

27. Volunteers -Special Olympics
• Facing $33.5M budget shortfall
before World Winter Games in
Idaho.
• Cut plans for paid staff in half
• Tapped volunteers from National
Guard, Defense Dept.
AmeriCorps, and other
nonprofits.
• Instead of training volunteers
on-site for two weeks (costly),
found a company to design a
free online training program for
them.
Flickr:ForeverSouls

29. Source: http://socialreporter.com/?p=516

30. Specific Examples
ASKING IN NEW WAYS

31. Thank You Notes –
Teachers’ Supply Closet
• Thank you notes
from kids with a
donation envelope
enclosed.

32. YouTube
• charity:water
raised $10,000 in
one day
• Includes donate
button, call-to-
action overlay,
channel listings,
ability to request
volunteer film-
making support
• Film school?
http://www.youtube.com/nonprofits

33. Simple Strategies – Ask More Frequently
•Huge increased
demand for services
•Scheduled one week
in August
•Each of the 39
centers hoped to
raise $40K
http://cityroom.blogs.nytimes.com/2009/07/13/salvation-army-makes-a-summer-
appearance/

34. One step further…
Source: salvationarmatlanta.org

35. Photo Credit: DarKobra, Wikimedia Commons
Specific Examples
DASHBOARDING TO MEASURE
PROGRESS

36. Real-Time Dashboards
Source: Forge
Source: Jan Masoaka, blueavocado.org

37. Tweet Your Dashboard

38. FINDING NEW DOLLARS

39. Specific Examples
INCREASING GENERAL AWARENESS

40. Movie Theatres

41. Billboards
Photo Credit: Flickr:mediaboytodd

42. Capital Regional Medical Center

43. Tallahassee Memorial HealthCare

44. Facebook Fan Page

45. Best fit is 30-49 age group. Interested in:
• Whether or not a nonprofit is successfully
making an impact (75%)
• Learning about organizations that are
actively working on issues and causes they
care about (62%)
• Success stories and updates on the progress
of the nonprofits they support (54%)

46. Specific Examples
FINDING NEW PROSPECTS

47. Thinking Outside the (Pizza) Box

48. • Identified “Highly Connected’ Alums, regardless of
how much money they gave.
• Used Linked-In Profile data to identify alums with
warm fuzzies for the school
• Developed a process to use Linked-In to keep in-
house donor data updated with current
information.
• Generational sub-lists

50. Photo Credit: Flickr:Photocapy
Specific Examples
REVAMPING PROGRAMS

51. Innovative Income – Joffrey Ballet
• 40% decline in ticket
sales
• Teach dance to the
public
• Taught in existing
space
• Between Jan-April,
$200K
• Increased attendance,
too
Flickr:oude School

52. Planning for the Future: Earned Income
Strategies
• Presented by Cindy Coney, MissionWise
• Tuesday, September 29, 8:30a-12 noon
• Check-in 8:15
• NOTE: This workshop is targeted for more
mature organizations that are better
positioned for earned income strategy
development.

53. Expanded Program Definition –
Bonnie CLAC
• Increased demand for
services
• Loss of $800 per low-
income client
• Expanded services up
the income ladder
• Extra $500 per client
to subsidize costs of
lower-income

54. Fee-For-Service
Consider charging for previously grant-funded
services

55. Hopelink - Seattle

56. Ample Harvest - Food Banks

57. Specific Examples
TURNING GIVERS INTO GETTERS

58. Facebook Causes

59. Shower Strike

60. Dumpster Diving

62. Specific Examples
FORGING NEW TERRITORY –
EARNED INCOME

67. FT LAUDERDALE, FL, July 09, 2009
Due to the current real estate market
conditions, a Florida couple is raffling off their
luxury home in Fort Lauderdale for only $10 per
ticket. After the drawing is held, the deed and
title to the home will be transferred to the lucky
winner (with no mortgage). A portion of the
proceeds will go to The Mission of St. Francis.

68. Specific Examples
COLLABORATING IN NEW WAYS

69. Target Each Other As Customers
• Meeting or office space rental
• Printing services
• In-house designer
• IT services
• PR
• Mailing services
Is there a nonprofit from whom
we could purchase services?

70. Event Collaboration
• Ballet and orchestra do “Grease” at a local
nonprofit theatre and split proceeds.
• Youth mentoring org teams up with local
Alzheimer’s group to target sandwich
generation for a 5K Run/Walk.
• Library and PTA team up for donated book
drive, and sale.
• Staff Swap

71. Shared Mailing Lists

72. Advocacy

74. “Funding for a new program that teaches
inner-city youth how to manage money … First
Tennessee Bank will present a $35,000 check
on July 22 to the Financial Literacy
Collaborative…”
“The collaborative comprises five nonprofits
that operate existing after-school and summer
programs for at-risk children…”

75. Joint Staffing

77. San Francisco

78. Transparency - Forge
• Changed program model
resulted in $100K shortfall
Forge founder Kjerstin
• Founder blogged about Erickson
mistakes, total transparency
• $50K foundation donation

79. THE BALTIMORE SYMPHONY
ORCHESTRA

81. Niche Site
http://www.bsomusic.org/bsokids/

84. Appendix
SOCIAL MEDIA RESOURCES

85. Social Media Guidance

86. Guidelines
http://sncr.org/bestpractices/

88. How to Reach Me
• Laura Deaton, Full Glass Consulting
• Phone: 888-784-3433
• Email: laura.deaton@fullglassconsulting.com