Fundraising In A Recession - Precise

Approaching Fundraising in a Recession – a Media Analysis

Background The purpose of this report is to provide you with an interesting overview of the current state of the charity industry, followed by a summary of how leading PR professionals are recommending the third sector tackle the recession. We have also included some social media charts tracking mentions of Comic Relief and Red Nose Day as a case study using our leading-edge analytics tools. Finally, we conclude this report with our service recommendations.

2

•Disclaimer copy here TBC

Industry News Wrap Charities suffering Elsewhere, the latest figures from the Public Fundraising Regulatory Association The impact of the financial downturn on charities has widened and deepened,

revealed that the number of people signing up to give to charity through face-to-face

with many facing the double whammy of falling income and increasing demand

fundraising hit its highest level last year and quoted chief executive Mike Aldridge as

for services.

stating that the figures proved face-to-face could defy the recession. Meanwhile the

Charities ability to carry out vital work is being undermined by a huge fall in the

number of employees signing up to payroll giving schemes has fallen only slightly,

level of donations. More than half of them have been affected by the economic

according to the Association of Payroll Giving Organisations. The average donation

downturn, according to data published by the Charity Commission; with a third

fell from £81.08 in 2007 to £78.99 last year, but Sophie Pritchard, chair of APGO, said

putting in measures such as dipping into reserves, reducing staff and increasing

payroll giving was a recession-proof form of fundraising. "There are reports of a

fundraising. The Salvation Army has reported that this year's campaign total was

reduction of up to a 30 per cent in charity income in certain areas, but we are

the lowest since at least 2005, blaming the shortfall on the recession. Meanwhile,

confident that payroll giving will weather the economic storm.”

Oxfam, which derives 80% of its income from its 714-strong network of shops, has announced a 12% fall in the number of donations being received - the first

Comic Relief

drop in eight years. BBC News recently revealed that trustees of one cancer charity have been forced to dissolve it because of struggles to raise money during

The news that Comic Relief had “defied the recession” to raise an updated figure of

the recession. Cancer Care Cymru, which funds specialist cancer nurses who

£80 million for this year's Red Nose Day campaign was quickly picked up by several

work alongside NHS staff in Welsh hospitals, said: "The present economic

news sites on July 2nd. In the online version of the popular tabloid, The Daily Mirror,

downturn has had a material effect on fundraising activities."

which attracts the highest percentage of UK users of any national newspaper website, Comic Relief organiser Lenny Henry was quoted as stating: "What a brilliant achievement. Everyone across the UK whether in schools, offices, homes or the

Opportunity knocks

blummin' pub should be immensely proud of how much they've raised for Red Nose Third Sector reports however that the recession will offer opportunities as well as

Day.” Third Sector reported that this was a “sizeable increase” on previous years.

threats to charities that are prepared to make investments. According to charity finance professionals the possible benefits of the credit crunch include the chance

In Professional Fundraising, chief executive Kevin Cahill said: “We’ve been bowled

to hire high-calibre staff, snap up cheap property and take advantage of lower

over by this extraordinary result. Even at a time when the British public may have

advertising rates. A recent paper from the Institute for Philanthropy also outlines

been worrying about their own situation they came together to make a real

the ways in which philanthropists could boost charity funding during an economic

difference.” Earlier in the month, Charity Finance Directors’ CEO Kevin Hickey said

downturn; advising that they adopt a 'spend-down' strategy.

the recent success of Comic Relief was a “good sign” for charities in The Guardian.

3

Disclaimer copy here TBC

Social Media Metrics Comic Relief: Trend in Social Media Coverage 40 Comic Relief announced that it would distribute 'bigger and fewer' grants overseas in the next four years and also revealed that it had issued its biggest ever single project grant to Time to Change, a programme designed to end stigma attached to mental health. The charity picked up most hits from an article in The Sun online which reported that Tom Jones was set to star in Gavin & Stacey, stating: “Tom scored a No1 hit for Comic Relief after appearing with cast members on the hit single Islands in the Stream.”

35

Social Media Coverage

30

25

20

15

10

5

0

4

Disclaimer copy here TBC

The charity was buoyed by a couple of interviews in regional papers with The Saturdays, who sang this year’s Comic Relief song, I Just Can’t Get Enough.

PR Approach & Social Media Metrics Expert Opinion – Media Analysis •

Mike Ash-Edwards, senior member relations manager at United Co-operatives

•

The PR blog stated that perception was vital to any business and “even more

and regular speaker at Charity PR conventions, said: “Public relations is just as

so for charities who heavily rely on their publics for funding”. This meant that for

important to charities as other organistations in raising profile and drawing attention to

charities to stay in the crucial position of “need”, they must be forever initiating new

their activities.”

appeals and strategies.

•

•

Behind the Spin states that PR is about communicating effectively to key publics

Missing Persons Helpine spokesperson Sophie Woodforde said the lesson

and creating a “mutual understanding” to gain corporate sponsorship, or creating

from the Tsunami appeal was that charities should try to promote themselves in a

excellent media relations to ensure good press coverage of fundraising activities,

bigger and better way and this is where PR can help.

adding: “There is also vast scepticism over how funds are used and whether they are

actually benefiting the cause. It follows that a key role for PR is to communicate to

•

both potential and current donors how donations are being spent and to highlight past

celebrities using his contacts and relations with the people to ensure their

successes. By publicising the information, charities can seek to gain this mutual trust.”

involvement. This created a media frenzy, and Make Poverty History procured a

Make Poverty History founder Richard Curtis recruited a large number of A-list

huge swathe of free media coverage and publicity.

Comic Relief: Social Media Coverage by Media Type •

3% 3% 13%

About.com lists seven tips to beat a recession:

1.

Don’t become or sound desperate

2.

Prove that you are responsible

3.

Don’t give up on your corporate or core-raising activities

4.

Diversify your funding sources by identifying all types of financial support.

5.

Put your fundraising programs under the microscope

6.

Don't pull the plug on major campaigns, but do slow down

7.

Keep up your marketing and PR.

14%

67%

Blogs

5

Twitter

Forums

Disclaimer copy here TBC

Videos

Mainstream Online News

PR Approach (continued) Expert Opinion – Media Analysis •

On Traffic on Maine, PR consultant Bob Maine states simply: “Cease the

•

nfpSynergy’s Joe Saxton added: “Charities can’t just go away and say they’ll come

conversation and you cease the relationship.” He goes on to offer the following

back in 20 years time when they have the kind of coverage they like. The challenge is

advice for fundraising in a recession:

to understand the kind of stories the media want to run and see where that can benefit the charity.”

1.

2.

Marketing to a simple, well thought plan and not acting on impulse or being paralyzed by fear.

•

Replace high cost marketing activities with more accountable options such

of the TV series Mary Queen of Charity Shops, claims that "our cultural G-spot has

as structured word of mouth marketing, referral and alliance marketing, direct

moved; it used to be greed, but now it's giving," while Naomi Levine, director of the

mail and communicating through digital media. These may be less

NYU Center for Philanthropy, believes that young people are increasingly willing to

glamorous than glitzy events, glossy publications and the glories of TV

donate their time or money to charitable causes.

advertising but in the end they are likely to prove more sustainable and will

•

certainly be less expensive. 3.

In a recent article in The Independent, Mary Portas, a retail adviser and presenter

The article goes on to describe how those who spend time on social media

platforms such as Facebook, Twitter and MySpace will regularly be asked by friends to

Measuring all your outreach efforts so you can accurately calculate the return

donate to nominated good causes at sites like justgiving.com, adding: “Charities are

on investment (ROI) for each marketing tool you use. Starting now you need

beginning to catch on to the persuasive power of online communities to give

hard data to make conscious, well thought out decisions about where your

consciences a nudge.”

effort and money (now both in short supply) should go. •

•

Jonathan Wilson of Red Bee Media believes that social media forms an integral part

Turner PR account director Ian MacQuillin said: “You often hear people at

of any modern promotional work, and that peer endorsement is crucial to success: "A

conferences say that the sector needs to educate the press to write better stories

television advertisement is never going to be as powerful as, say, your friend enthusing

or make them understand they should be more positive. It’s complete rubbish.

about something – and if they're enthusing about a charity, you're less likely to respond

The media have their agenda and they’re not going to change it to fit in with you.”

cynically to that message."

•

•

Gill Dandy, chair of Fifth Estate, the non-profit sector group at the Chartered

The Independent concludes that “when personal recommendations are transplanted

Institute of Public Relations stated: “Every department needs to be singing

into the fast-moving, almost dizzying world of social media, thousands of people can –

fromthe same hymn sheet, regardless of the audience. Whether it’s community

at least in theory – be reached in the space of a few minutes”.

relations, corporate relations or donor relations, the PR messages should go all the way through.”

6

Disclaimer copy here TBC

Media Analysis – our services Possible areas of media analysis

•Professionally presented reports, easy to interpret

•Example of our daily dashboard

7

Disclaimer copy here TBC

               

Split by Media Type Publication Tracker Journalist Tracker Reach/Circulation Media Value/AVE Target Audience Penetration Region Corporate Partner Key Message Peer Group Tracking Proactive vs Reactive Campaign Analysis Topic/Issue Tracking Call to Action Spokesperson mentions Sentiment Analysis

Media Analysis – our services What We Evaluate  All media whether sourced by Precise, another monitoring agency or by the client  If required, we can evaluate from key sources only as defined by the client

How We Evaluate  Rigorous media analysis performed by highly skilled analysts to client’s bespoke requirements  The largest in-house media analysis team in the UK  Sector-trained analysis teams ensure familiarity, relevance and industry expertise

 Results clearly and simply communicated with commentary to provide context

When We Deliver  Same day spotlight reports delivered on the day of media coverage  Weekly, Monthly and quarterly reports delivered within 3-5 working days of reporting period  High-quality, boardroom ready analysis reports delivered in PDF, PowerPoint or Word format  Online analysis tool available that integrates seamlessly with monitoring website

8

Disclaimer copy here TBC

The Registry, Royal Mint Court, London EC3N 4QN T +44 (0)20 3301 4490 www.precise.co.uk