Essential Fundraising - Givers or takers?

Geoff Howard warns arts fundraisers against selling themselves too cheaply.
Older arts marketeers and fundraisers may remember the colourful and rather unorthodox Dick Condon, who in the 1980s successfully managed a number of touring theatres, the principal being the Theatre Royal Norwich which he billed as the most successful regional theatre in Europe. As a visiting speaker he once addressed a packed house of students at King Alfreds College, Winchester (now the University of Winchester) on Marketing of the Arts, which was at around that time consolidating as a defined area of study. Dick was asked about his policy on discounts on ticket sales and an interesting exchange ensued:

Do you give discounts to senior citizens? No. Why not? Marks & Spencer doesnt. Do you give discounts to students? No. Why not? The profits of the student union bar dont suggest that students are short of money. Do you give discounts to unemployed people? No. Why not? By definition unemployed people dont have any money so it would be pointless.

The last exchange resulted in a low baying noise from within the assembled student body protesting at such apparent flagrant insensitivity to those members of society generally considered to be in disadvantaged circumstances. The session ended; Dick strode from the stage to exit from the rear of the auditorium and catching my eye as he passed my seat delivered a studied wink accompanied by a spreading mischievous grin. A lesson had, it seemed, been learnt.

From punter discounts to donor benefits

In the arts there are many opportunities for offering all sorts of discounts and benefits as part of the marketing mix and there is a long track record of doing so. Half-price tickets on the first night the circus comes to town do spread the word and build the audience for the run a sound commercial decision, despite the Condon view on discounts.

But if you want to build or develop support donor clubs for your charity do you want Friends in Need or Friends in Greed? In arts organisations there is a great temptation to garnish friends with all sorts of benefits. There is nothing wrong with a friends organisation that is part of the marketing mix and, as such, offers benefits to promote ticket sales. But do we really need to offer benefits to those whose altruistic support we are seeking? It is, of course, possible to mix the two but it is important that you are totally clear in your own mind what it is that you are asking for, and what it is that you are selling. The arts fundraiser who is unclear on these issues can create very heavy rods with which the backs of the venue management team of the future will later be beaten.

There is no doubt that the ubiquitous named seat is a proven winner. I have known seats offered for as little as £30; the highest price that I have ever achieved is £5,000. The problem comes when the donor turns up, demands to sit in his/her seat, claims the two-for-one right of Friends and complains that the Friends Bar is closed because it is a small capacity, restricted house, mid-week matinee!

Expectations need to be managed very, very clearly. In the enthusiasm of the Appeal Launch, and responding to the pressures to meet ever increasing targets, it is easy to promise the earth to todays donors, leaving the tab to be picked up by tomorrows management free tickets, mega discounts, annual friends gala performances, monthly newsletters, guaranteed priority booking for all future events.

Benefits for beneficiaries

The vast majority of charitable donations are given without the donor receiving any recognition and without the donor receiving any benefits. Very successful fundraising propositions do, however, focus on the beneficiaries of the charity in question. Your gift of £x pounds a month will mean that five cataract operations are performed every day. Your gift of £y will fund ten home visits to vulnerable older people. Your gift of £z will provide a dance workshop for ten year-olds. To make the donor feel that they are achieving outcomes with their donations which otherwise would not occur has to make sense.

Benefits for donors

However, by way of a health warning, remember that any benefits for donors, if appropriate at all, must be economically viable and deliverable.

There is not space here to explore the realm of sponsorship but, while Im talking health warnings, do make sure that the sponsors benefits do not cost more in time and money than the sponsorship fee being paid. Beware the buy a brick scheme at £25 a brick , which promises that the name of every donor will be engraved on the wall of generosity in the new building not only is this valuable space then forfeit for life but the engraving costs could seriously exceed total receipts! And if you believe that this has never happened, then I can assure you it has.

It is also important to understand that a published shopping list of naming opportunities can lower the sights of major donors as well as raising them. The quantity surveyor may have advised that the cost of the Recital Room is £1.5m and the cost of the Theatre in Education Unit £750,000. The donor who is very well able to give £1.5m or more, but passionate about theatre in education, may then just give £750,000.

Recognition for donors

The names of Sainsbury, Carnegie, Wolfson, Weston and suchlike punctuate the story of major philanthropic giving with encouraging regularity. Not only does this pay tribute to major benefaction but also encourages others to follow their shining example.

The listing of donors in an organisations publications can be a low cost way of recognition for regular supporters and there is no sin in saying thank you publicly. Whether you want to gather names on a spectrum of platinum through to tin will be a decision based on the individual cultures of each recipient organisation.

It pays to remember the following: it is a poor sales rep who leads on discounts and not the quality of the product, and it is a poor fundraiser who leads on donor benefits and recognition and not on the benefits that the charity brings to others.