SuddesGroup

1X 10X 50X

January 26, 2009 | Nick Fellers

If an investor is giving you 1x in response to a mail campaign, any sort of an event or ‘totally unsolicited’ then he or she would likely give 10x in response to a one-on-one (personal) visit-with-an-ask and 50x if the visit includes a dialogue around the funding plan (as part of the full case-for-support and ask).

This is not scientific but it’s far from arbitrary. This is my own little way of thinking about potential based on what I’ve seen at many organizations (start-ups to colleges). It’s a way of thinking about

1. The potential of your current relationships.

2. The potential of new relationships (if we visit!)
3. Why we need to be visiting

Everybody says they need more prospects. Instead of trying to get more people to give 1x think about how you can get more people to give 50x!

• 1x is clearly emotional. I’ve seen a lot of people cry at events – but the giving is still impersonal and ‘charitable’ in nature.

• Sitting with someone one-one-one (or 2-1 / 2-2) allows you to listen and respond. It makes the ask personal and seems to trigger another level of discernment in giving – increasing a commitment to an organization ten-fold (10x).

• But to really get the big big gifts (50x) we need to do a better job of walking our prospects through a funding plan and going back and forth, having a dialogue about the ask… giving context and providing the FULL case-for-support. These conversations are much more strategic.

At my seminars I share a story of a school that met with parents and supporters. They asked everyone to “prayerfully consider giving at a level that was significant”. Those that had previously contributed $2000 through the auction responded with $20,000 gifts. The school was still frustrated. They had $1M prospects giving $100K and $100K prospects giving $20K.

As much as the prospects liked the school they had no context for how much money to consider. They had no way of guessing that $1M might be the linchpin for the campaign… there was no discussion that gave the committed families and supporters a framework to think bigger.

This school went back to each supporter with a complete funding plan. For a $1Million dollar ask, for example, they would ask for the $1Million (a specific number). More than that they would have a discussion around WHY the $1Million and what it would enable the school to do (leverage, leadership, timing, etc). The prospects had a broad context in which to consider the ask and many of them increased their gifts by five times and some by 20 or 30 times!

I’ve met with billionaires and many many millionaires. Trust me, nobody has disposable income. Nobody is going to guess that a $1Million will help. $10K or $50K is a lot to anyone! It’s not until we show up that we can get 10X. It’s not until we dialogue about 50X that we can get 50X.

A rhetorical question: Is it easier for you to visit with every current funder and ASK (10X) or to get ten more prospects to give? From there, is it easier to get your best prospects to 50X or to get 5-10 more visits?

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Trends v. Fundamentals in Nonprofit Funding

November 26, 2008 | Nick Fellers

We’re asked to talk about ‘trends in philanthropy’ or ‘trends in fundraising’ which troubles me because the social sector needs more discussion about fundamentals – not trends. If you ask me to talk about ‘trends’ I will use this as a lens to highlight the lack of fundamentals – think of it as me spinning the conversation – it’s all good.

Every business in and sector lives and breaths by fundamentals, first.

• A clear vision/direction (illustrated a clear MESSAGE).
• A clear revenue MODEL.
• A clear PLAN including an understanding of the MATH (impact math and income math) to get there (e.g. goals, levels, etc.)

As I’m writing this to compare and contrast trends and fundamentals I realize most of the trends (that get discussed) are really fads because too often they’re ‘the next big thing’ and don’t have staying power. These could include:

• Earned Income (Social Enterprise)
• Lance Armstrong’s bracelets
• 5K races
• Social Networking Funding (The Obama effect)

Maybe if they were backed on a case-by-case basis with fundamentals they would be true trends and not fads.

Example - Earned Income: I went to a Social Enterprise Alliance gathering four years ago. What I witnessed were some orgs starting earned income ventures without attention to fundamentals, no clear plan and no willingness to do the math to see that they were losing $50 on every widget they produced. On top of that, one speaker cautioned, “It’s hard enough to start a business with people that have their lives together let alone those that don’t.” Four years later 16 out of 17 orgs I interviewed abandoned the earned income stream – each for the lack the fundamentals outlined above.

The reason most small businesses fail is because they don’t have a grasp on fundamentals. Nonprofits often don’t ‘fail’ in the same sense that for-profit businesses do [running out of money]. Instead, they limp along for years longer, subsidized by passion, volunteerism and employees on the fast-track to burnout (human capital model)… this unique resource model is often a masking agent for a lack of fundamentals.

If you’re a board member, a senior staff person or development officer you can do a great service to your organization, your team and your cause by leading a discussion on the fundamentals… by leading a discussion to clarify the direction or purpose of the organization, by clarifying the model and by working through the math. This discussion is simple, not easy.

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Notes From The Field: 3 Big Simplicity Lessons Reaffirmed

October 16, 2008 | Tom Suddes

I just spent 48 hours with two incredible (but so different!) For Impact Organizations.

Here are the 3 big lessons on SIMPLICITY that were reaffirmed in so many ways.

1. Build a SIMPLE MESSAGE… around your CORE SOLUTION.

2. Build a SIMPLE CASE… around your SIMPLE MATH.

3. Build a SIMPLE PLAN… around your CASE and MATH.

The ‘SIMPLE MESSAGE’ was reinforced with two incredible social entrepreneurs whose entire message can be captured in those magic 6 WORDS… that were already part of their organization NAME and their organization TAGLINE!

The SIMPLE CASE and SIMPLE MATH applied to both organizations. Turn a ‘Master Plan’ into a very Simple 3-Point Case with 3 Specific Phases. Look at the ‘MATH’ and pick a number ($100M in this case) and the required gifts to achieve this goal. Use the MATH of $13 a day per child from the public sector and the $10 per day per child ‘Need’/’GAP’ to build a SPONSOR MODEL around $3,650 per year (sponsors a child) and $10,000 a year (sponsors a family).

Finally, turn the Message, the Case, and the Math into a SIMPLE ACTIONABLE PLAN! We’re going out to test the Case with five or six of our very best prospect. We’re going to get 3 champions to get 3 other sponsors who will get 3 sponsors. We’re going to meet with the Mayor who is one of our current partners and super champions. And on and on and on.

***Special, Special, Special Note: As this incredible former Marine and Social entrepreneur said, “I just didn’t realize it could be this SIMPLE.”

It is.

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The Only Presentation Tool You Need

November 25, 2006 | Tom Suddes

Simplify your message so that it fits on a napkin.

It’s not easy. In fact, it’s really hard to simplify your message/model/meaning on a back of a napkin. However, I believe that your ability to engage someone with what you do, why and how is proportional to how clearly and cleanly you can communicate your message.

This is a really big deal. When sitting down with someone new they should ‘get it’ in a matter of seconds. Too often we overwhelm people with powerpoints, three-ring binders, slick brochures … don’t do it.

I’ve made many ‘million dollar calls’ using ONLY a napkin. I believe it is the BEST and ONLY presentation tool you need.

Just for kicks … see if you can identify these industry changing businesses from the napkins below (click to enlarge). I will buy a subscription to Fast Company for anyone that gets all four. E-Mail with your answers or your own napkin (I’m happy to respond … add thoughts, etc.)

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Your Funding Plan Supports Your Case

November 21, 2006 | Nick Fellers

I’ve been a road warrior the past two months. For schools, entrepreneurial start-ups and other organizations a big epiphany continues to be the idea that your funding plan actually is part of your case for support.

To me, the funding plan is the HOW behind the big picture dollar goal and the big picture dollar goal is what you need to deliver on your vision. So, in essence, this is HOW you will deliver on your vision. Is that important? You bet!

I’ve found that most organizations don’t have a funding plan.

Three simple action steps here:

• Determine the dollar amount you need for both operations and projects. What is the lump sum? Do the math! 80% of organizations can’t answer this question.
• How many investments would you need - and at what amounts to achieve this goal?
• When? (One year? Three years? Five years?)

The funding plan does a few things as it relates to your case:

• It makes it believable
• It shows a potential investor how she/he would fit into the funding vision.
• It also illustrates that you’re not just picking a number out of the air - there is logic.

Extra bonus: There are times when you can actually ask the potential investor, “Where do you see yourself in this plan?” Then, you let them select a dollar level.

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Sustainability

October 14, 2006 | Tom Suddes

I see and hear and review a lot of organizations’ plans for “funding”, for a “campaign” and for “fundraising”. It seems like they’re always FOCUSED on a big word, for them: SUSTAINABILITY. For some reason, I hate that word.

“SUSTAINABILITY” is a function of IMPACT! (Not INCOME.)

It seems like every “nonprofit” in the world is looking for “ENDOWMENTS” for “SUSTAINABILITY”.

Rather, if you FOCUS on your IMPACT… and your DELIVER on your IMPACT… there will always be INVESTORS who will help you FUND YOUR VISION.

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(from the) Bucket to the Bank

April 16, 2006 | Tom Suddes

While working with the SALES TEAM at Colorado College last week, one of their bright, young superstars, Robb Pike, came up with a great ‘CATCHPHRASE’ for moving from
‘IN PLAY’ to actually getting the AREA OF INTEREST and DOLLAR AMOUNT ON THE TABLE.

He called it ‘DOLLARS IN THE BUCKET’.

[Getting the AREA OF INTEREST is the BUCKET; the DOLLARS reflect a realistic investment amount.]

Then, it was pretty easy for us to move from:

‘DOLLARS IN THE BUCKET’ … to … ‘DOLLARS IN THE BANK’

Here’s my SIMPLE 1, 2, 3 for moving prospects at the top of your MASTER PROSPECT LIST to a COMMITMENT … AT THIS GIVEN MOMENT!

1. ‘IN PLAY’
   • Take ACTION!
   • PRE-DISPOSE!!
   • Get VISIT Scheduled!
   • Do DISCOVERY (maybe even on the VISIT)
2. ‘PRESENT THE OPPORTUNITY’
   • Get $$$ in the BUCKET!
   • Get a ‘NUMBER on the TABLE’ … in a SPECIFIC AREA of INTEREST
   • No ‘FUZZINESS’ about WHY you are with them!!!
   • Create SENSE OF URGENCY
3. ‘COMMITTED’
   • Get the COMMITMENT!
   • $$$ in the BANK!
   • Put it in WRITING! (You to them; them to you.)

As always, JUST ASK!!!

You can download some other visuals to help you with this concept this download includes:

Visit flow: how to get to the presentation How to get your best, most qualified prospects, ‘IN PLAY’ The ‘Sales Funnel’

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No More Mission Statements

January 20, 2006 | Tom Suddes

vs. CLEAR, CONCISE, COMPELLING MESSAGES!!!

THAT GRAB YOUR ATTENTION!!!

(Everyone gets 3,000 marketing ‘messages’ a day; 1,000,000 a year!)
“STAY ON MESSAGE!!!”

(One, and only? Lesson from world of politics!)

In our world, that means someone can say, “not now” or “not a priority” for legitimate reasons, but never because they didn’t UNDERSTAND the VISION/MISSION/ MESSAGE!!!

“WE CAN’T POSSIBLY DO WHAT YOU’RE SUGGESTING, TOM. WE ARE JUST ‘TOO BIG’, ‘TOO IMPORTANT, TOO COMPLEX’.”
“OH, YEAH?”

*It takes us 3 pages just to “introduce” our organization as a preface to a 30-page proposal or grant request!!! (for $10,000!!!)
TAGLINES . BATTLE CRIES . AHA!!!
“We’ll put a man on the moon before THE end of decade.”
“I have a dream.”
“Life, Liberty and the Pursuit of Happiness.”
“He’s not heavy, he’s my brother.”
“1,000 Points of Light.”
“Just Do It.”
“Like a Rock.”
“Live to Ride. Ride to Live.”
Bottom line: WHAT’S your MESSAGE???
P.S. There are 130 words since Simplicity, Brevity, Clarity.
Note: Please send me more messages, taglines, battle cries that MOVE you or your organization.

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