Case 1 - Syracuse Symphony Orchestras
The Syracuse Symphony Orchestra (SSO) is a full-time performing ensemble in Central New York State. Like most other arts non-profits, it relies heavily on donated income and has adopted a multidimensional fundraising approach.
Personal relationships are built primarily through events and receptions related to specific concerts. Relationships are also built around phone calls and personalized handwritten notes, whether as a thank-you or extending an invitation. Furthermore, assigning donors to a staff person to assist with any help regarding donations or ticket inquiries further develops these relationships. The focus of personal relationships is the core donor.
Direct mail is used year round and includes core, transitional, nonrenewed, lapsed, and nondonors. There are about five cycles that occur throughout the year with personalized letters going out to each of these groups. Further segmentation of these groups is done as well to enhance the personalization of the letter. For example, people who have attended a single concert receive a different letter from those who are concert series subscribers.
Telefunding is outsourced to a for-profit company and focuses on lapsed and nonrenewed donors, as well as single-ticket buyers who have never given in the past. After each concert, a list of single-ticket buyers is segmented into non-renewed, lapsed and nondonors. These people then receive a phone call from a representative who emphasizes what a great concert they had just attended. The SSO finds that this personal touch produces a good response: The group with the highest response rate is the nondonor group, with average gifts of $100. Before Telefunding, average gifts among this group were only around $30, showing this technique helps both in acquiring new donors and also increasing the average gift amount.
Traditional media is not used directly for fundraising efforts but rather for ticket sales marketing. Radio, television, and print ads are the main means of advertisement for the Symphony and as a result create a greater audience to be solicited. The Symphony also uses virtual means. SSO officials believe that the Internet, even though it does not bring in many donations, is an effective way for potential and current donors to learn more about the Symphony, its programs, and fundraising opportunities.
1. Given ways on how the Symphony segments its constituents, what might be some other examples as to how they could segment their ticket buyers and solicit them?
2. Given the techniques used by the Symphony, what might be some specific strategies as to how donors and potential donors could be won, kept, and lifted?
3. The more engaged someone is with an organization, the more likely they are to invest into the organization. Using volunteers is a great way to turn a non-donor into a donor. How might the Symphony engage its volunteers to assist in each of the fundraising activities?
Case 2- HEALTHY KIDS INC.
You are the founder of a social enterprise called Healthy Kids Inc., which specializes in improving nutrition and reducing child obesity by educating parents in how to feed their children in a healthy way. After a slow but steady start, a major foundation has approached you and asked you to write a grant for major funding that would quadruple your operations within the space of one year. The grant would continue for two years and then be phased out over the next three, during which time you would be expected to replace the foundation's funding with outside donations, grants, fees, and government support. As part of the grant process, the foundation has asked that you assess the risk of your operation.
1. Write a short memo that discusses risk in the following categories.
a. Leadership
b. Staff and volunteers
c. Sustainability of the enterprise concept
d. Marketplace volatility
2. What are the risks involved in simply accepting such a large increase in funding represented by this grant, especially since the support is temporary?