Stop Fundraising! Selling Impact to Stakeholders, Rather Than Begging for Charity. Presented by: Lauren Calzada Trinity Habitat for Humanity

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1 Stop Fundraising! Selling Impact to Stakeholders, Rather Than Begging for Charity Presented by: Lauren Calzada Trinity Habitat for Humanity

2 This workshop places concepts from The End of Fundraising into a Habitat context. To learn more directly from the author, participants are encouraged to purchase the book or borrow it from your local library.

3 How do we stop FUNDRAISING? Identify Habitat s impact Discover who needs Habitat Understand why they need Habitat Clearly define what Habitat has to offer to meet their needs.

4 How do we identify Habitat s impact? Why do YOU love Habitat? Social impact of Habitat What makes Habitat different? Effect of Habitat

5 Why do YOU LOVE Habitat? If you don t know, STOP and figure it out! What s YOUR why? It is much easier to sell a mission you believe in!

6 Why do YOU LOVE Habitat? Habitat Transforms Lives The houses we build are the vehicles that make change possible.

7 Why do YOU LOVE Habitat? Habitat not only talks the talk but they walk the walk We are a Christian organization in mission and work culture Habitat provides opportunity Habitat creates wealth Habitat strengthens families Strengthens neighborhoods Strengthens communities Strengthens cities Hand up not a hand out

8 Why do YOU LOVE Habitat? Brings stability to families Sustainable Life-long Impact

9 What is Social Impact? Impact is the long-term sustainable change attributable to a specific activity. Social Impact includes changes in physical and mental health, quality of life, and attitudes or behavior. --Source: The Foundation Center Social Impact The effect of an activity on the social fabric of the community and well-being of the individuals and families. --Source: The Business Dictionary Our nonprofit product is IMPACT

10 CHILDREN Habitat s Social Impact WHEN COMPARED TO RENTERS (OF THE SAME AGE, INCOME, RACE, ETC) Less likely to be involved in a teen pregnancy More likely to graduate from college Less likely to be idle at age 20 Less likely to be on welfare Higher earners in adulthood

11 FAMILIES Habitat s Social Impact WHEN COMPARED TO RENTERS (OF THE SAME AGE, INCOME, RACE, ETC) Less likely to have substance abuse issues More likely to attend church Less likely to join school PTA Creating equity in their home (wealth)

12 Habitat s Social Impact NEIGHBORHOODS WHEN COMPARED TO RENTERS (OF THE SAME AGE, INCOME, RACE, ETC) Decreased crime Increased property values and improved homes Increased community involvement Neighbors who live 4 times longer in a community

13 What makes Habitat different?

14 Hands-on Volunteer Experience Networking opportunity utilize a Habitat build like a day at the golf course Team building opportunity Connects volunteers to Habitat s mission 82% of executives surveyed said good corporate citizenship helps the bottom line and 52% said corporate citizenship is part of their business strategy, according to a study by the Center for Corporate Citizenship at Boston College.

15 Hands-on Volunteer Experience The Habitat advantage is that you see tangible results right away in the houses being built, and you get to be part of the solution. Habitat delivers a local impact. It's not like giving your dollars away and who knows where they go. You can physically touch and see something at the local level." Jeffrey Parkhurst, managing director of brand valuation at Interbrand

16 Brand Value A solid brand identity: tells an important story sets expectations gains attention fosters relationships helps ensure long-term survival The Cone Nonprofit Power Brand 100

17 Brand Value Habitat s brand is #4 valued at 1.8 billion The Cone Nonprofit Power Brand 100 The for-profits are thirsting for connections with strong nonprofit brands. The nonprofits are in large part ignorant of just how much those connections are worth. If nonprofits don t get up to speed on the value of their brands, they re going to shortchange themselves (and that s putting it mildly) in terms of the amount of money and other concessions they can expect or demand from a for-profit in a partnership arrangement.

18 Brand Value

19 Effect of Habitat Customers Church Members Employees Students

20 Effect of Habitat Effects of Habitat on an Organization BUILDSTRONG Customers/Members: 80% of Americans have a more positive image of companies that support a cause they care about. 81% of Americans are likely to switch brands, when price and quality are equal, to support a cause. 66% of Americans report having a greater trust in those companies aligned with a social issue.

21 Effect of Habitat Effects of Habitat on an Organization BUILDSTRONG Employees/Members: Pride increases from 56% to 90% when their organization has a cause-related program. Loyalty jumps from 67% to 87% when the organization supports a social cause

22 Social Capital Market -a social capital market that appreciates the economic value of social change and is willing to pay for it this marketplace is significantly larger and more robust than the market for philanthropic or psychic benefit dollars. It s where nonprofits of the future will need to invest their energy in order to survive and thrive. --Jason Saul, The End of Fundraising

23 Social Capital Market Value-driven investors providing financial tools of significant size and volume as venture philanthropy for nonprofits and social entrepreneurs. Growth capital is provided to scale up organizations with the capital to solve problems. -- Learn more from SocialVelocity.net

24 How do we stop FUNDRAISING? Identify Habitat s impact Discover who needs Habitat Understand why they need Habitat Clearly define what Habitat has to offer to meet their needs.

25 Who Needs Habitat?

26 Who Needs Habitat? Corporations Churches Schools/Colleges/Universities Contractors/Vendors City, County, State Upstream consumers i.e. insurance companies, home retailers, etc.

27 How do you sell Habitat s impact? Don t push your product solve the customer s problem. Selling is about showing prospective partners how we can address their critical needs create value. What NEEDS you can meet, the value you can offer, and why that matters to the people you re soliciting.

28 How do we stop FUNDRAISING? Identify Habitat s impact Discover who needs Habitat Understand why they need Habitat Clearly define what Habitat has to offer to meet their needs.

29 Why do they need Habitat? Find out everything you can about a potential donor - What do they value? - What are their challenges/needs? - Who do they serve? - What do they do?

30 Why do they need Habitat? Questions to answer regarding your customers What is their motivation for being involved in the community? Who do they currently partner with in the community? -Why did they choose to partner with them? What is their community engagement/relations budget? Who makes the decisions on who they partner with? What will they gain by partnering with Habitat?

31 Why do they need Habitat? Know what you have to offer and how it can create value for your customer. Once you identify the impact buyer s need, you must create the value proposition

32 Why do they need Habitat?

33 How do we stop FUNDRAISING? Identify Habitat s impact Discover who needs Habitat Understand why they need Habitat Clearly define what Habitat has to offer to meet their needs.

34 What Habitat has to offer

35 What Habitat has to offer A believable collection of the most persuasive reasons people should notice you and your nonprofit -- and take the action requested. Being the best isn t enough. People need to believe you are the best option for them. -- Learn more from KissMetrics.com Substantiated & Measurable

36 What Habitat has to offer Value propositions are not the same as outcomes. Outcomes are the changes or results produced by your work. Value propositions are the ways in which those changes can benefit an impact buyer. So in effect, a value proposition is what links your outcome to the social capital market. It translates the value or benefits of your work into an attractive proposition for the impact buyer. Value propositions answer the ultimate so what? question. --Jason Saul, The End of Fundraising

37 What Habitat has to offer

38 What Habitat has to offer Customer s Need (challenge or desired goal) Church: Engage local young adults in the community. Corporation: Reestablish ties to local community What is offered (direct benefit) Triple Play Build Model TCU/1 st Pres Partnership First Pres Fort Worth provides 90% of the sponsorship and 10% of the volunteer labor TCU provides 10% of the sponsorship and 90% of the volunteer labor. House Sponsorship Utilize Habitat volunteer days as team building Utilize Habitat volunteer days to network Value Created: Habitat Another family served! Church - Church exposure to non church member young adults A&M Experience of Habitat and community involvement with less fundraising pressure. Habitat Another family served Corporation Their name is now tied to Habitat brand. Their logo now appears on Habitat house signs for other vendors to see. They have the opportunity to show prospective vendors community investment.

39 THANK YOU!!