Week 12: Fundraising, Sponsorship & Volunteering

1. PUBLIC RELATIONS PRACTICE
2014
Week 12
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DR KANE HOPKINS

2. 1
3
2
Fundraising & sponsorship
The exam
Volunteers

5. Fundraising
Defined as the purposive process of soliciting and
accepting monetary gifts from individuals,
corporations, and foundations by non-profit
organisations having educational, medical,
religious, political, charitable, or other stated
purposes

6. Right now…
• Kaibosh Food Rescue are raising $20000 for a van
to collect donated food
• Auckland Art Gallery Foundation have committed
to raising $33.4 million to build an extension to the
gallery
• Te Horo School are holding a high tea and
Beerfest, as well as doing the 40 Hour Famine.
• Not forgetting all the fundraising that is going on
for Christchurch

7. Fundraising Institute of NZ
The Fundraising Institute of New Zealand is the
professional body for those employed in or involved
with fundraising, sponsorship and events in the not-
for-profit sector. They serve:
• Organisations working to provide services and raise
funds in the charitable sector.
• Fundraisers and volunteers employed to assist
charitable organisations to achieve their mission.
• The public of New Zealand who donate funds and
obtain services from charitable organisations.

8. Social Exchange Theory
This theory suggests that relationships are formed or
not formed, maintained or discontinued, on the basis
of constant cost-benefit analyses by the participants,
and comparisons with alternatives such as other
relationships or no relationships at all

9. For example:
… if one person helps a friend, this friend will
experience an obligation to reciprocate at some time
in the future, offering a form of assistance that is
equal in magnitude. If this norm of reciprocity is
fulfilled, a trusting and loyal relationship evolves.
!
(Cropanzano & Mitchell, 2005)

10. Relationships are…
• Give and take, but balance is not always equal
• SET explains how we feel about a relationship with
another person as depending on our perceptions
of:
• The balance between what we put into the
relationship and what we get out of it.
• The kind of relationship we deserve.
• The chances of having a better relationship with
someone else.

11. Social Exchange Theory …
• … should be taken as a frame of reference that
takes the movement of valued things (resources)
through social process as its focus.
• … its scope is defined by an assumption that a
resource will continue to flow only if there is a
valued return contingent upon it.
• Psychologists call this contingent return
reinforcement and economists simply call this
reciprocally contingent flow exchange.

12. Types of Fundraising
• Sponsorship
• Corporate donations
• Structured capital campaigns
• Direct mail
• Telephone solicitations
• 0800 and 0900 numbers
• Email
• Commercial enterprises

13. IHC Fundraising 2010

18. Principles of successful
fundraising
1. Don’t confuse budget and capital fundraising
• Budget Fundraising
– Charges for services
– Memberships
– Donations from appeals
• Capital Fundraising
– Large one off donations
– Grants
– Subsidies

19. Principles of successful
fundraising
2. Ensure that your appeals have
• An urgent specific need that provokes giving
• A project that will meet that need
• A logical and readily identifiable group of potential
donors
• A nucleus of interested, influential volunteers who will
support the project from the start. Both time and
money
3. Identify your givers
• A captive group – members, parents
• Natural partners
• A community-wide group – a town, city or province

20. Principles of successful
fundraising
4. Be honest when selecting prospects
• Ask why someone would give
• The total number of givers in any community is usually
no more than 10% of that community’s population
5. Never think you can use professional fundraisers
to do the asking for you
• Outside collectors can never be as effective as those
with a genuine interest
• Can impact on future fundraising

21. Principles of successful
fundraising
6. Make sure the campaign is well coordinated.
Four essential elements
• Preparation of a complete plan
• Organisation of groups selected and trained for
specific tasks
• Education of everyone involved, askers and givers
• Personal appeal to prospects asking for their
donation using direct mail or personal calls

22. Principles of successful
fundraising
7. Look for few and big donations
– Some people are able to give more than others and
large donations inevitably come from those with
substantial means
– Major donors should always be involved – any potential
large donor should be included in the campaign
planning
– The rule of thirds
•One third of the donations come from the top 10 donors
•One third of the donations come from the next 100 largest
donors
•The final third come from every one else

23. Principles of successful
fundraising
8. Choose you askers carefully
• People who do the asking will have more influence on
givers than your cause
- People from the same community or group
- Must be qualified
9. Make the campaign fast and furious
– Using direct mail or an 0900 number can achieve this
10. Don’t forget to ask for the donation
• Awareness of the campaign is not enough
• Asking remains the critical factor

24. Donors respond to a good
cause
• Relevance – to contemporary public needs or
problems. You must provoke significant personal
interest and concern
• Importance – that ensures stand out quality
amongst numerous appeals. You need your cause
to rate higher than others
• Urgency – that precludes decisions making
delays among potential donors. Try and create
immediate action

25. What do donors want?
• Prompt acknowledgment of their gift
• Confirmation that their gifts have been used in the
way that was initially communicated to them
• Sometimes between gift acknowledgement and
the next ask, measurable results of their gifts at
work

26. Avoid these fundraising errors
• Pretended you or the people involved know more
about fundraising that you actually do
• Implement a poorly planned campaign, wrong
scheduling
• Choosing the wrong leaders – a respected person
is better than a well known person
• Poor targeting through not recognising your
natural and most likely givers
• Dragging out a campaign

28. Sponsorship
• Sponsorship is the purchase of the right to
associate the sponsor’s name, products or
services with the sponsored organisation’s
service, product or activity in return for
negotiated benefits

30. Types of Sponsorship
There are basically three types of sponsorship
1. Those which are seen as an alternative form of
advertising
2. Low recognition funding of a true community
service or event
3. The sponsorship of special public events as
touring art shows

31. Things are getting serious

32. Major Events Management Act
The Major Events Management Act 2007
(MEMA) provides protection for major international
events that are held in New Zealand and are
declared to be major events. Its purpose is to:
– obtain the maximum benefits from the major
event for New Zealanders
– prevent unauthorised commercial exploitation at
the expense of either a major event organiser or
an official sponsor of a major event
– ensure the smooth running of major events

33. Protection from Ambush
Marketing
Section 2.3.16
The key protections in the MEMA for events that have
been declared to be major events are prohibitions
against:
– representations that create an unauthorised
association between the event and a brand, good
or service
– unauthorised advertising and street trading within
declared 'clean' areas around major event venues
and transport routes to venues.

34. Types and Characteristics
Type
Typical
Association
(image to be
conveyed)
Predominant
audience type
Typical
audience size
Market-based
reasons for
sponsorship
Example
Entertainment
Established
progressive
Par4cularly
dependant
on
genre
of
broadcas4ng
Mass
na4on
appeal
Market
penetra4on
media
cluster
fragmenta4on
evasion
ASB
Business,
Telecom/
Campbell
Live
Arts
Excellence,
crea4vity
Exclusive,
fairly
specific
Niche
Niche
market
development,
posi4oning
Meridian
Energy/NZ
Ballet
Sport
Dynamism,
vitality,
compe44ve
Youth
young
people
OLen
large,
some4mes
global
Interna4onal
market
development
Adidas/Abs,
America’s
Cup/
Family
of
5
Social causes
Caring,
socially
concerned,
good
corporate
ci4zen
OLen
community
based,
some4mes
regional,
local,
or
interna4onal
Variable
Corporate
image
development,
market
development,
reposi4oning
Westpac/Life
Educa4on
Trust

35. Key Requirements
Before you enter into a sponsorship arrangement
two key requirements need to be considered
1. The relevance of the sponsorship to your particular
product
2. The need to get full value from any investment
made

36. Arranging a Sponsor
• Ask yourself these questions
• What benefits can we offer?
• How can its name be promoted alongside ours?
• Consider the following
• Can the companies logo be used on promo material,
posters, banners, giveaways
• Can the company’s staff be involved?
• Wold the program attract media coverage?
• Can the program be called the XYZ Company Event

38. Volunteering
Clary & Snyder, 1999

39. All the kids are doing it
• Individuals spend an average of four to five hours a
week as voluntary members in various community,
religious, and arts organisations (Hooghe, 2003).
• Collectively, their activities create 5% of the gross
domestic product (Salamon, 1995).

40. Volunteering in New Zealand
• It is estimated 1,241,000 people volunteered in
2008 (34.0% of the population aged 10 years and
over).
• 34.8% of Pacific People
• 34.5% Pakeha,
• 34% non NZ born Europeans,
• 33.4% Asia
• 33.2% Maori.

41. Volunteering in New Zealand
• Volunteering in metropolitan areas has reached
34% in 2008, while in rural areas decreased for
5.9% to 34.3%. In 2008 34.3% of people from the
provincial urban and 33.7% from the secondary
rural areas volunteered.
• 37.8% of females were engaged in voluntary
activating, comparing with 30% of males

42. THE
EXAM

43. THE EXAM