Income Generation Strategy

2012 - 2015

www.demelza.org.uk

Income Generation Strategy

2012 - 2015
page 2 page 2 page 2 page 4 page 5 page 6 page 7-17 1. Executive Summary 2. Strategic Intent 3. Context 4. Income History 5. Dependencies 6. Financial Forecast 7. Action plans Partnerships Community Events Individuals 8. Trading Retail Lottery 9. Marketing and Communications 10. Products and Campaigns 11. PR 12. Conclusion

page 18-21

page 22 page 23 page 24 page 25

www.demelza.org.uk

Income Generation Strategy

2012 - 2015
1. Executive Summary Terms of Reference:
The strategy provides an analysis and evaluation of the current and prospective situation for Income Generation together with recommendations to improve income across both the fundraising and trading arms of the Charity. The focus for the coming 3 years is to build sustainable income by recruiting new donors, developing and retaining the donors the charity already has through improving the customer care service to donors.

2. Our Strategic Intent

The organisation has set out 8 key areas of focus for the next 3 years. Of these, 4 have the most relevance to income generation: Strategic Intent 2: Raise sustainable funds and use them wisely Strategic Intent 3: Achieve growth as defined by the number of people we help, the intensity of care required and the equality of access the service. Strategic Intent 7: Innovative in our fundraising activity and opportunistic in raising funds outside of area. Strategic Intent 8: Develop the excellence of the volunteers, staff and trustees. Demelza will diversify activity and secure sustainable funding sources by: Investing time and resource into research and analysis. Developing and trialling innovative fundraising activities. Developing a stronger profile in West Kent, SEL and E Sussex for the recruitment of new donors, using an integrated planning approach. Investigating the formation of a social enterprise in lottery or elsewhere. Developing and incubating new ideas to find the next big thing in fundraising at Demelza.

3.Context
Since 2010 much has been achieved in laying the foundations for growth in fundraising. These achievements include: Cleansing and improving the Donorflex database and training staff on its use. Launching a new website and building social networks through Facebook and Twitter. Developing improved branding and more consistent design work, making communications more professional. Opening 6 new shops, refurbishing 6 older shops, launching a new on line shop and relocating to a new distribution centre. Running a successful Capital Appeal and developing a major donor network of 50 individuals. Developing new fundraising events, including Music on the Hill, Pooches on the Prom and the Twilight Walk. Establishing a direct marketing programme with a ROI of 2:1. Introducing the Fundraising Standards Board code of practice.

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Income Generation Strategy

2012 - 2015
To achieve these objectives this strategy focuses on key priority areas for fundraising:

Priority
Donor acquisition and development

Actions
Raising awareness and recognition across the region

By whom
Marketing

Develop new income streams

Through the hothouse group, social enterprise and major donors. Looking for the next big thing and fundraising in new territories.

All staff

Supporter care service and retention

Looking at the donor journey. Creating a loyal donor base and ensuring they are properly recognised for support

All staff

Developing people

Introducing project management of key activities and becoming more target driven. Investing in our Income Generation team. Planning, evaluation and monitoring.

Management

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Income Generation Strategy

2012 - 2015
4. Income History
The table below shows income over the past 7 years. Comparisons between years are hard to make due to varying factors of capital appeals, one off donations and fluctuations in legacy income.

Fundraising 000s
Community Corporate Individuals Major donors Total Corp, comm individuals Events Grants Legacies Total VFR Capital appeal Total Income

2005/06
2,017

2006/07
2,833

2007/08
2,023

2008/09
2,810

09/10
1,400 1,201

10/11
1,130 891 492

11/12 forecast
917 800 669 153 2,539 218 258 1,100 4,115 28 4,143

750 1,902 476 138 1,013 3,643 2,833 575 354 634 4,396 53 3,643 4,449 2,023 553 524 226 3,326 1,436 4,762 3,560 322 451 785 5,118 197 5,315 2,601 357 486 456 3,898 751 4,649 2,556 180 273 2,029 5,039 600 5,640

In 2008/09 Damien Hirst made a donation of 750k. 2010/11 saw a large legacy year with 2m income, 400K of which was accrued out of 2011/12 Grants income benefitted from a 270K donation from Goldman Sachs Gives in 2009/10. Event income has declined over the years but the very significant drop in 10/11 was due to the ball being allocated to the capital appeal (80K). The significant drop in total income from 2010/11 to 2011/12 is due to a 700k drop in forecast legacy income. There is some evidence that the underlying trend in community and corporate (which is now sub divided into individuals and major donors) shows a decrease post recession of 2008. Investment in individual and major donor fundraising has enabled us to stem this decline in 2011/12 but the income is still not comparable to pre -recession levels.

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Income Generation Strategy

2012 - 2015
5. Dependencies
Finance There will be increasing need for timely accurate income and expenditure reporting to enable the fundraisers to track and forecast income and costs. The charity rely on the finance team for swift banking of income and timely payment of invoices, and need support from finance in budgeting income forecasting and financial modelling, especially when putting business cases together for new activity and when trying to predict income. Care Fundraisers and Care staff need to have a close and intimate knowledge of each others work in order that we can effectively engage and communicate with donors and can raise the right funds to pay for the services we deliver. There is a need for up to date stories and anecdotes to share with the public and also a need to know the impact and outcomes that the Hospice delivers for children so these can be shared with confidence with donors. Supporters increasingly want to be close to the work and want to participate in helping in deliver Demelzas mission. This means the fundraisers need access to the Care teams and to children and families, in person and virtually through training, reports and updates. HR The people strategy needs to be supported by HR whose expertise in the law, recruitment and development is invaluable, and the IG department continue to work closely to recruit and support volunteers. Investment Income will grow over the next 3 years but growth will only come if investing in fundraising and retail. Demelza will be seeking investment from the reserves to support donor acquisition work, research and analysis, new shops and refurbishments and brand development. There will also be investment in events where we will need seed funding to establish events with a view to seeing a slower return but at a higher net value.

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Income Generation Strategy

2012 - 2015
6. Financial Forecast

2012/13 Community Individuals Partnerships Events Legacies Trusts Total VFR Retail Lottery Small Growth Growth Flat Small Growth Flat Growth Growth 3.0% Growth

2013/14 Flat Growth Small Growth Flat Flat Flat Growth 5.0% Flat

2013/14 Flat Growth Growth Growth Growth Flat Growth 5.0% Flat

The above table shows where growth will come from over the next 3 years. The total value of income will increase over 3 years by 1m.

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Income Generation Strategy

2012 - 2015
7. Action Plans
Partnerships Demelza created a 'Partnerships' team in 2011 in response to a growing focus on philanthropy fundraising and high value donor stewardship. Private philanthropic giving is a growing market and has huge potential for Demelza in that to date major donors have not been proactively targeted for revenue fundraising. By bringing all high value fundraising together, there is an opportunity to improve the way partnerships are account managed. Demelza can now develop focused products to target corporate and high net worth individuals such as 'Pay for a Day', and establish a portfolio of high end events, for both fundraising and stewardship purposes and can begin to tap into peer to peer major gift fundraising by opening up networks, developing fundraising committees and engaging Demelza's vice presidents. The Partnerships Team aims are to: Leverage existing high value relationships and supporters. Develop new high value and corporate relationships and supporters. Develop new fundraising products and events to engage wealthier supporters and corporates. Deliver high levels of service, stewardship and account management in return for high value donations. Corporate Partnerships: The department aim to initiate, develop and retain relationships with businesses that maximise net income for Demelza and where feasible and desirable to generate additional opportunities and benefits to both parties. Companies are committed to continuing and growing charity partnerships and investment is forecast to increase1. However, corporate / charity partnerships need to be regarded not just from a financial perspective, but in terms of the broader value that can be gained by both parties. Working in partnership with these businesses is vital to keep them engaged with Demelza over the longer term, and the relationship needs to be on a mutually beneficial front.

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Income Generation Strategy

2012 - 2015
A large % of corporate support at Demelza is from medium sized enterprises. It is important for companies that they can achieve a bigger impact at Demelza, than aligning themselves alongside a multinational brand charity, where they risk getting lost within the myriad of corporate-charity partnerships. A relationship with Demelza allows then to be more dynamic in achieving their social responsibility objectives. Recent figures from the DSC show that the most generous companies give away an average of only 0.43% of their pre-tax profits in 2009/10, including Gifts in kind2. This support has moved from philanthropic donations to investment of resources, expertise and assets. Such a change of emphasis has been driven in the main, by the need for companies to be regarded as socially responsible and for more tangible business benefits to come out of such associations. This is not only because of stakeholder pressure but also because it now appears to make sound business sense with evidence of a link between business success and a corporate commitment to social responsibility. Clearly, this is vital when looking at how corporates are approached and how relationships are developed with businesses supporting Demelza.

1 2

Source: C&E Corporate-NGO Partnerships Barometer, London, C&E Advisory Services Lillya, 2011

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Income Generation Strategy

2012 - 2015
Aim
Maximise income and support from existing corporate supporters.

Activity
Staff fundraising, events, gifts in kind and employee volunteering.

Yr 1
Maximise cross-selling of Demelza products e.g. events and Lottery.

Yr 2
Increasing regular giving through employees.

Yr 3
Develop the Business club to increase membership.

Measures and outputs over 3 years

Increase average donation per corporate to 750.

High donor retention.

Increase engagement and retain support. Improve evaluation and feedback to businesses. Develop clear case for support to provide tangible model for businesses to fundraise for. Developing employee volunteering in line with corporates, to help meet their social responsibility needs. and measure the social impact.

Increase rolling 12 month corporates on file to 750. Increase in number of employees volunteering and converting to financial support.

Work strategically with corporates to align Demelza with their community investment needs.

Create an offer of strong fundraising campaigns.

Go Dotty Launch and market Pay 4 a Day to Business supporters.

Numbers of Days sold to reach 10 per year in 3 years. Number Go Dotty partners and value increases to achieve 100k income across all of IG.

New business development.

Target new corporate supporters in different geographical areas and target specific industry sectors e.g. pharmaceuticals.

Developing cause-related marketing and other product licensing initiatives.

Maximise Gift in Kind opportunities that can be budget-relieving across the charity. Increase sponsorship opportunities for corporates and develop social sponsorship.

Targeting high level partnerships that could lead to a step change in profile and income.

Win new partnerships. Number and value of CRM partnerships increase from 2 to 5 over 3 years.

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Income Generation Strategy

2012 - 2015
Trusts and Foundations. Trusts at Demelza have performed well this year, in spite of an increase in competition due to cuts in government funding to certain projects. Trusts are currently operating on a 1 in 4 hit rate.

Aim
Attract new funders to Demelza.

Activity
Maximise grant applications through research and using directories of trusts/foundations.

Yr 1
Work with the corporate team to look at specific corporate foundations e.g. Goldman Sachs Gives. Develop new proposals for new trusts and grants such as Comic Relief. Increase trust fundraisers hours of work. Use grant finder software. Work closely with the Care team to package up specific projects and services to give tangible funding proposals. Actively seek feedback on failed applications and learn from our competitors if they have had success where we have not.

Yr 2
Work with major donor fundraiser to identify personal trusts and foundations. Work with the Kent Community Foundation to help private individuals to give through grants.

Yr 3

Measures and outputs over 3 years

Numbers of applications made.

Increase value of grants received.

High value and multi-year funding packages Improve funder relations to maximize repeat donations.

Ensure strong evaluation and reporting is provided to funders regularly.

All trusts to visit the Hospice or meet the employee (if relevant) to show how their money is being used effectively.

Average value of grant to 10,000. Repeat funding and multi-year grants awarded.

Increase hit rate of applications.

Robust application process and high quality proposal writing.

Partner with Care staff to develop funding proposals.

1 in 4 hit rate target (currently 1 in 5).

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Income Generation Strategy

2012 - 2015
Major donor fundraising Major donors are a recent area of fundraising development at Demelza, and proved successful in engaging donors for the Bricks and Water appeal. However, it is difficult to get donors involved without tangible projects for them to fund and this needs to be the focus when developing a stewardship plan. Major donor fundraising takes time to develop and is all about a face to face approach.

Aim
Develop the base of potential major donors.

Activity
Research names and build HNW networks.

Yr 1
Use Donorflex to identify high value prospects. Ask key supporters to assist with identifying potential donors. Work with the corporate and trusts fundraisers to ensure key prospects are identified. Develop a strong case for support. Develop a bespoke stewardship plan for each prospect . Package up activity into attractive asks. Create events that engage the specific demographic being targeted e.g. Ball, dinners, and clay pigeon shoot Produce a recruitment and retention plan. Ensure celebrity supporters are given specific tasks/roles. Invite celebs to support key events. 2 new celebs on board.

Yr 2
Colder prospects buying in data from prospecting agencies and using online data research tools. Develop a prospect pipeline.

Yr 3
Build Peer networks including trustees and VPs. Peer to Peer major giving programme developed.

Measures and outputs over 3 years

Number of prospects in the pool increases from 50 to 100. Donor pipeline to be defined to include number of 5K + gifts.

Increase engagement and loyalty of major donors.

Excellent stewardship to forge close engagement with the charity.

Develop an ambassador programme for key major donors.

2 Funding committees formed.

Increase average gift from 2k to 5k and target 20% repeat gifts.

Develop prospecting and stewardship opportunities.

High end fundraising events Prospecting events. Stewardship and cultivation events.

Rolling calendar of events in place. Events across all 3 regions.

Peer to Peer fundraising events.

ROI for events (direct and indirect income) 3 to 1 in year 1. Shorten lead times from first contact to first gift (measures tbc)

Increase Celebrity engagement.

Attract high profile support to Demelza to attract press and public attention.

Increase number and quality of active Celebrities. All events have celebrity endorsement.

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Income Generation Strategy

2012 - 2015
Legacies and In Memoriam Giving Legacy income at Demelza came in at just over 2m in 2010/11 and has performed at over 1.m for the last 3 years. The UK legacy market is now worth 1.9 billion and currently provides around 13% of overall voluntary income (Legacy Foresight) Though there was a decline over the past two years of 3.5%, the prediction for legacies till 2015 shows growth. In Memory gifts come into Demelza via three routes; a direct donation sent from the donor, a collection sent in by a relative or a collection undertaken on behalf of the family by the funeral director. In Mem donations have grown and will raise 200k in 2011/12.

Aim
Increase number of donors writing Demelza in their Will.

Activity
Develop a plan of potential legators to target.

Yr 1
Comms to staff, volunteers, key supporters and committed donors, trustees, patrons, families. Work with local solicitors to promote will writing to a potential new group of legators and through Will writing fortnight and networking events. Increase research in to possible legacies through Smee & Ford.

Yr 2
Training ambassador volunteers to give talks and presentations to prospective legacy donors in local communities. Monitor and track pipeline and pledges to improve forecasting.

Yr 3
Identify legacy pledgers and create a comms plan for them.

Measures and outputs over 3 years

Number of pledges and notifications (number tbc). Average legacy value increases. Number of solictors engaged in will writing fortnight up from 12 to 20.

Improve our branding and marketing to increase In Memory donations and legacy gifts.

Review marketing materials and redesign marketing collateral.

Raise awareness of Demelza Consider a Direct through websites such as Marketing strategy about Remember a Charity and remembering Demelza in forging links with the Charities a will. Aid Foundation. Legacy marketing pack to be produced. Develop specific supporter journey for in Mem donors with a bespoke thank you. Promote Tribute funds through websites such as Just giving, Much Loved or Facebook.

Focus groups and stakeholder research. Increase in legacy and In Mem income and average value.

Solicit secondary In Mem gifts.

Communication with In Mem donors to develop an emotional bond. Build relationships with In Mem donors on line.

5% Conversion of in mem donation to a direct supporter/donor.

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Income Generation Strategy

2012 - 2015

Community Fundraising Community income was the last area to be impacted by the economy, but in 2011 the sector saw this income stream suffer from the ongoing and double dip recession. The result is that there are fewer activities happening for Demelza as communities switch loyalty to (perceived) more pressing or deserving causes, or the charity is having to share the proceeds with other charities or the income from previous 'banker' events has almost halved in value. Social trends are also changing and Friends Groups have declined across the sector as lifestyles of the retired are now more likely to be focused on caring for grandchildren, saving money or even continuing to work to pay for future care homes or for the lucky few spending more time on leisure and holidays and less time in traditional community fundraising groups. On the plus side, in 2010 there were some key community sectors being neglected by Demelza where income had declined over the years and these have been targeted and this has led to growth and renewed support.

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Income Generation Strategy

2012 - 2015
Aim
Increase support from the local communities across the region.

Activity
Encourage supporters and supporter groups to be self sufficient and increase beneficiary events across the region. Utilise the website in a positive and professional way.

Yr 1
Launch Do It For Demelza. Upgrade Fundraising literature across the board. New Schools and Community Fundraising packs. Go Dotty events.

Yr 2
Formulate Common Interest Groups. Running Group/Demelza Walkers. Secure a Mayoral charity of the Year.

Yr 3

Measures and outputs over 3 years

Number and average value of community beneficiary events worth over 1000 increases. Hit rate and membership numbers on Do it for Demelza site. 50 new supporter groups in 3 years average value 1000. Increase number and average value of - Schools: from 40 per month to 50 per month. Average value from 320 to 450. - Faith groups, from 20 per month to 30 per month average value from 240 to 300. - Membership groups from 11 a month to 15 and average value from 425 to 500. - SMEs increase in number and value. Number of active FR volunteers increases. Age demographic reduces. Shortages and gaps filled across all regions.

Retain and develop volunteers.

Work with Vol Services to ensure high quality support to volunteers.

Big Thank You community event. 15th birthday celebrations. Map the current volunteer support across the regions. Develop specific roles for volunteers such as schools fundraising or legacy ambassadors. Formulate a strategy for each Specialism and each region. Develop centralised tools and resources. Training and development. Recruit a fundraising assistant in London and PT admin in Kent. Set individual targets and KPIs per region and per specialism. Improved panning and review processes. Ensure compliance with FRSB code of conduct.

Campaign to recruit younger more active volunteers. Staff training and development in volunteer management.

Improve the effectiveness and direction of Community Fundraisers across the Region.

Matrix Management Fundraisers will each have specialist focus areas based on target audiences that will not be bound by geography.

Pro-actively encourage income generating events in each area. Grow autonomy in the regions. Cross team working to raise profile in the regions. Map engagement across the regions to highlight gaps and opportunities. Improved liaison with Care teams and Trading teams. Shops as central hubs to attract fundraising in the community.

Income per region increases. 3 to 1 ROI in each region. KPIs achieved. Target sign ups per fundraiser for Demelza events.

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Income Generation Strategy

2012 - 2015
Events Events income peaked at Demelza in 2006/07 at over 575K but has seen annual declines since. It is hard to establish a pattern however, as events income has not been recorded consistently in the same place and some event income has been posted to the capital appeals, corporate activity and community beneficiary events. Going forward there will be 3 key event income streams: Community Beneficiary Events, those that Demelza does not initiate or have responsibility for, but are supported by the community fundraising team. Demelza Events, that are organised and controlled centrally and are paid for by the charity. (The Run, the Walk, other marathons, Pooches carol concerts etc) and this will include Open Challenge events where some account management and central coordination is needed (treks, skydives etc). Partnership events that are targeted at high net worth or corporate clients and are managed by the Partnerships team (Golf, the Ball, London Marathon) Over the past 2 years there has been a review of the events calendar to better understand where return on investment is highest and increase visibility of costs including staff costs. As a result Demelza has begun to build up a portfolio of new running and challenge events, developed new events Pooches on the Prom and the Twilight Walk and held a successful Ball at the Savoy hotel. In 2011 Demelza were the joint beneficiaries of a music festival 'Music on the Hill' which made 50,000 for Demelza (before staff costs) and this will be repeated in 2013. Events should be positioned as a 'service' to help deliver the strategic objectives of all Demelza income lines. For example, clearly outline the fundraising objectives and design an event/events to meet them. There is a clear need for cross organisational buy in to events and this will be easier if there are clear strategic goals to be achieved with each event. Different fundraising teams would be fully engaged in that event's promotion because they have a vested interest in its success. The charity will gain more by jointly fulfilling its over-riding objectives and the success of an event becomes more easily measurable if clear objectives are set before a plan is put in place. The challenge with event fundraising is that participant numbers in mass participation events have been falling across the sector and average sponsorship value has also dropped by up to half. This means the charity is having to spend more on marketing events and seeing lower returns. There needs to be concentration on net return than ROI, spending more to earn more but and looking at UK challenge events where there has been growth, including skydives, treks and open runs.

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Income Generation Strategy

2012 - 2015
Aim
Review and refresh the event portfolio.

Activity
Focus on target markets then find the best event to attract the right audience.

Yr 1

Yr 2

Yr 3
Full annual calendar of events that reach all target audiences and support the aims of income generation strategy. MOTH 3.

Measures and outputs over 3 years

New portfolio of events that are successful and meet donor needs.

Remove Twilight walk and Alternative max pax event replace with Go Dotty events in place of MOTH. in May. Review and develop Pooches concept. Identify new ideas from the hothouse meetings to pilot as new events. E Sussex carol concert venue secured. MOTH fully resourced. 15th birthday event. Pilot radio advertising. Robust marketing plans and budget in place. Celebrity endorsement and a hook for all events. Regional and central teams all targeted to recruit participants. Leeds castle secured as a venue for max pax event.

Increase participant numbers.

Increase in participant numbers. One max pax event to have 1000 participants. Celeb support for all events.

Increase sponsorship value.

Compelling messaging linked to our work, with clear cost examples in all promotional materials. Events to be linked to thematic areas of Care wherever possible.

Cross selling to event Text giving at max pax participants. events. Badges for schools to Sponsorship apps. encourage sponsorship. Awards ceremonies. Exploit Face book and on line giving tools to the max. Incentivise sponsorship value for corporate and groups. Use Donorflex planning tools. Track staff time and all related costs. Event plans and business cases for all new and existing events in place each year.

Average value increases from 40 to 60 for a run, other targets to be set per event. Convert 5% of participants to other forms of giving or repeat eventers.

Improved planning and evaluation of events.

Effective project planning and management, cost tracking and post event evaluation.

Achieve budget for events. Achieve reasonable ROI as per business cases. High quality event delivery and supporter care.

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Income Generation Strategy

2012 - 2015
Individual Fundraising Demelza currently has a database of 38,000 names, including 23,000 Lottery Members. 8,690 active donors (donated in last 3 years) and 6,428 lapsed donors (donated between 3 and 6 years). Cash donations from individuals will generate circa 300,000 in 2011/12 via online donations, unsolicited donations, Just Giving pages and direct mail response. Currently very few donors give regularly in the form of direct debit or standing order. Currently there are 430 direct debits and standing order donors who give an average of 11 a month. Demelza has not considered face to face or 'street' fundraising at this time. Current trends in face to face recruitment are that whilst there are more sign ups than ever before (100,000 more people signed up via PFRA agents than the previous year, the second highest level in 10 years3), attrition rates are high, the cost of recruitment is high and public opinion is often antagonistic. Some town councils have restricted the number of face to face fundraisers they allow on their high streets; some major charities (Oxfam, NSPCC) have canceled their face to face recruitment for the first time in many years. Demelza will continue to watch this trend and review its position annually.

Aim
Increase donor base of individual givers.

Activity
Integrate postal, on line and above the line marketing with fundraising, retail and lottery activity to adopt a multi channel approach to recruitment.

Yr 1
Donor and supporter acquisition through the Revenue Campaign The Difference is Demelza. Pilot DRTV. 2 Mailings.

Yr 2
Mailings. Buy cold data. Target retail gift aid, lottery players and in mem donors and design a supporter journey for them.

Yr 3
Shift from DM to on line, TV and telephone recruitment campaigns.

Measures and outputs over 3 years

Increase base of regular givers from 430 to 2,000+ over 3 years. Number and value cash donors increases.

Increase response rates or average donation value from direct asks.

Gain insight to develop their value and recruit more of them. Help donors participate in our work through campaigning and storytelling as well as fundraising.

Develop a supporter journey. Make communications personal wherever possible. Strong case for support and cost examples.

Impact and outcome reporting to donors to feed back the difference they make.

Increase average regular gift from 11 to 13 per month through telephone upgrade campaigns.

Conversion and cross selling.

Break down the silos of the donor structure and be donor-centric in with the selling approach.

Telephone and email upgrade campaigns for regular givers to increase their monthly gifts.

Upgrades, conversion and cross selling annually.

Measure and improve lifetime value of key donor groups.

Public Fundraising Regulatory Association annual report 2012

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Income Generation Strategy

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8. Trading Retail
Aim: Increase portfolio The charity retail sector is buoyant with charity shop numbers growing considerably over the past 2 years and income growing. The weak economy has proved to be a favourable environment for the success of the charity retail proposition. The portfolio is now 19 shops and over the coming 3 years there is a plan for the net number of shops to rise to 24. By the end of 2013 the aim is to have 20 shops trading. There will be a review of the trading presence across the region and a plan of where to target new sites. Improve Retail Gift Aid Penetration percentage The introduction of claiming gift aid was problematic in the early days but has now established itself with 11% of sales being gift aided. This is below where the charity would like it to be and the aim is for a higher GA penetration in the coming years after training and promotion across all shops. Standardise branding and presentation Retail have started in 2012 a refurbishment program to bring all shop up to a consistent high standard of presentation and retro fit older units. Monitor and reduce costs Whilst income has grown, there has also been a significant increase in costs and as a result the contribution retail makes to the charity has not risen in line with sales growth. Proactively generate stock The ongoing challenge for all charity retail is the consistent supply of quality stock. With rag prices continuing to increase there is growing competition for donated stock across both charities and commercial operators and supply is not keeping up with demand. Train and manage volunteers effectively Volunteer numbers are sufficient but the age profile is older and there is a difficulty in trying to recruit new and younger volunteers for new shops.

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Income Generation Strategy

2012 - 2015
Aim
Improve sales and profitability.

Activity
Focus on operations, service, merchandising and training staff and volunteers to increase return per foot and profits per shop.

Yr 1
Increase profitability by driving Average Weekly Sales and Gift Aid contribution: Benchmark our sales/profitability across the region and sector. Review pricing. Stock generation initiatives. Promotional plan in place for each season and event. Work in partnership with other departments to increase shops presence as a community focal point. Continue to rebrand and update older shops. Improve customer service and merchandising standards. Focus on efficiency and cost savings. Review systems and procedures. Infrastructure review of Retail.

Yr 2
Identify low profit shops for disposal. Acquire new shops in key areas.

Yr 3

Measures and outputs over 3 years

AWS per shop to 1900. Profit per shop to be agreed. Gift Aid penetration to 30% in 3 years. All shops profitable.

Improve customer service and experience.

Customer and market research identify what they want and what needs to be done to deliver to them.

Improve staff & volunteer awareness of Demelza products and services in liaison with other departments. Volunteer and staff training. Bespoke Supporter communications targeted at gift aid sign ups. Ongoing procedures reviewed and quality standards agreed. Invest in infrastructure to support new shops. Clearance shops.

NVQ /accredite d training?

All shops branded and updated.

Improve operational efficiency.

Maximise contribution through the smooth and efficient management of shops. Maximise income from waste saving and recycling Improve volume and quality of donations. Review current presence and map areas of growth and opportunity across East Sussex, Kent and SEL.

Annual Internal Audit in place.

Gift Aid sales increase. Profits increase Y1 20% Y2 25% Y3 30% Rag sales maintained but increase in income from recycling and other outlets.

Add value to the stock cycle.

Car boot sales. Renegotiate rag prices. Rag bins in town centres without shops. E bay selling. Phone and cartridge recycling Research and analysis of town demographic. Competitor surveys. Cross team support to raise presence in new areas prior to shop openings. Target locations identified. New web site. Improved photography. Bespoke ranges on line. Virtual Gifts or On line wish list.

Create a Portfolio Strategy.

New shops identified. Boutique/niche/furniture shops identified.

New shops opened.

Number of shops tbc.

Develop E Commerce.

Increase on line shop sales.

Develop database of on line shoppers and develop a comms plan to increase value. Give as you Live partnerships.

Affiliate sites.

On line sales increase.

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Income Generation Strategy

2012 - 2015
Lottery Demelza has successfully run a Society Lottery since 2001. The charity is registered with the Gambling Commission to run a society lottery and hold both licences for remote and non-remote gambling. The Lottery membership is currently 22,400 playing weekly members. As such, Demelza is currently in the top four of Hospice Lotteries in the UK, of which there are 107 registered members, and are second in showing the largest net growth since May 2009. Growth is ongoing and part of the direct approach used to recruit potential lottery members by managing self employed direct Sales Advisors. The weekly attrition of membership is below 1% ongoing of total membership. The weekly draw is done in house with registered software acknowledged by the Gambling Commission.

Aim
Increase player numbers.

Activity
Continue on a path of recruitment through sites such as supermarkets and events and sign people to direct debit mandates.

Yr 1
Focus on new territory such as East Sussex. Monitor non payers and reengage where possible.

Yr 2
Target lottery recruitment at less affluent areas and younger women.

Yr 3
Door to door recruitment?

Measures and outputs over 3 years

30,000 players by 2015. Cost to recruit remains at 11. Attrition below 1% a month.

Increase player value.

Start to add value, if growth slows, by shifting attention to retaining and cross selling to players, reducing costs and targeting new areas.

Promote superdraw. DM campaign. Bespoke comms and asks for lottery file.

Telephone Upgrade campaign.

Once the player numbers reach 28,000-30,000, need to look at upgrading and converting these donors to other ways of giving.

5% response to other asks. Weekly Superdraw players x 1000. Lottery contribution reaches 1m in 3 years.

Develop new income streams.

Scope feasibility of acting as a bureau to other charities (see below).

1 partner identified and piloted.

More partners identified.

New income stream established.

100k income from new business initiatives.

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Lottery Bureau service
The Lottery department plan to leverage its experience in lottery fundraising by supporting other charities and developing income through third parties. Option one: Pursue the opportunity to administer the set up and running of a lottery for the RNRM charity. A proposal was presented to the RNRM charity in Portsmouth earlier this year and this included a financial proposal on setting up a lottery, administering membership and holding a weekly draw. RNRM are still keen to pursue this option and the outcome of their next Trustee Board meeting will show if this is a possibility. The fact that they are a National Charity with a large donor base both of current and ex servicemen and families indicates that to achieve a profitable lottery membership would be short term to achieve. Option Two: Consider rebranding the lottery to one that would reach out and encourage other charities to join. This would work on the basis that any additional charities that join the branded lottery would benefit from Demelzas assistance in them setting up and marketing their own lottery under one umbrella branded name. Each additional lottery members from the charities, as well as the ex Demelza lottery members, would enjoy the possibility of winning higher cash prizes as well as being marketed under the one umbrella name. Their individual lottery membership donations would still however be funding their own chosen charity. Demelza would set a cost for administering each charitys membership as well as a contribution of marketing costs. The benefit to the charities starting a lottery is that they would not have to provide a prize draw fund as this would continue to be provided by Demelza. A balanced proposal on costs of running this and profits to new charities as well as the Rebranded Demelza Lottery would need to be provided. Note: It appears from research that the majority of charities that start a lottery, whether alone or through an umbrella charity, tend to stagnate once they have resourced their initial individual donor base for members. Demelzas strength lies in the fact that it has the experience in recruiting and managing self employed advisors, as well as knowledge of capturing members through direct store/events/corporate employees, town centre routes. There would obviously be an additional cost to the new charities wanting to pursue this route. Collecting Pots A pilot has been running for 6 months to develop distribution of cash collecting pots. There are two part time paid Sales Advisors to develop distribution and central volunteer admin support. If successful this model will be rolled across the region with the aim of increasing income and improving service levels. The distributers will be incentivised on the number of pots distributed by earning a % of the income. This will be a way to access new supporters through SMEs in areas where Demelza currently have low penetration (West Kent).

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2012 - 2015
9. Marketing and Communications
In order to maximise marketing impact, it is necessary to build our knowledge of donors and potential donors in terms of profile, awareness, motivations and understanding of what the charity does and also to get insights into why donors do or dont support Demelza to inform branding and communications. This could lead to a brand review in 2014.

Aim
Increase understanding of current, lapsed and potential donors.

Activity
Research programme.

Yr 1
Measure perception of Demelza Brand. Identify which rational and emotional factors the Demelza brand should incorporate. 12 month rolling plan. Marketing support plans for all activities. Provide template collateral such as empty bellies and presentations for all departments. Develop the Donate section of the site. Increase promotion of online shop both online and offline.

Yr 2
Brand review.

Yr 3
Set up a route to measure market share and track awareness levels.

Measures and outputs over 3 years

More informed branding, messaging and communications delivering greater impact.

Ensure effective planning across all activities, events and support communications. Ensure consistency across all Brand communications.

Develop annual planning calendar.

All Departments update and use. Evaluations recorded.

Improved internal communications on planned activities.

Update and broaden the current Brand guidelines. Re-launch briefing process and form. Drive traffic. Promote website Offline. Improve internal processes for keeping the website up to date, user friendly and relevant. Continue training programme across all users to ensure we capture all relevant data and keep the data clean.

Brand review.

Brand relaunch.

Improved branding across all communications.

Increase effectiveness of online.

Re-launch site. Automated communications. More dynamic updating of site.

Donations direct to Demelza.

Increased online sign ups and donations and regular givers.

Further embed Donorflex as an effective business tool.

Load up and run Donorflex 10. Add enhanced data to Donorflex records such as MOSAIC coding to increase our targeting ability. Set up Donorflex to support effective implementation of the supporter journey.

Review database providers. Advanced usage for CRM.

E-mail programme

Improved selections for mailings across all groups.

Increase effectiveness of Donorflex at delivering income.

Develop suite of reports off Donorflex that help to support business planning.

Increased ROI for all activities.

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10. Products and Campaigns
Go Dotty - This is Demelzas biggest fundraising campaign of the year and runs through childrens hospice week. There is an established brand awareness of the campaign and it is enthusiastically supported across the region by corporates, schools, community groups and individuals. This campaign will continue to develop and intend to pilot a Go Dotty event as the focal point for the 2013 week. This event (a walk in dotty costume) will be targeted at schools, families, community groups and the mass public held at a key venue. Share a Card - This raises 20,000 each year and will continue to be marketed to schools, groups, SMEs and individuals at Christmas. Pay for a Day - This product will be launched in September 2012. It is a high value product primarily aimed at corporates and major donors to replace the failing Adopt a Nurse product that has proven too expensive in the current economic climate. The price point is 6900 to pay for a full day of hospice services and donors are rewarded with special recognition and accreditation. Demelza Business Club - This initiative will continue to be promoted as part of the portfolio of corporate engagement tools. High value partners will have use of the site for free, others will pay to be members and the site will be public facing to allow non-members to see its benefits before they join. Whats That Pong? - This schools product has not had much take up in 2011 so will be reviewed and remarketed to leisure groups as well as schools and youth groups. A regional championship model will be developed with competitive fundraising and inter school challenges included in the campaign. Revenue Campaign - An awareness and fundraising campaign targeted at individuals to encourage sign ups for regular giving, cash donations and major gifts to support Demelza running costs. Targeted across SEL, Kent and East Sussex using poster campaign, social networking, viral marketing and above the line press, radio and TV ads. Demelza will consider DRTV on regional channels or cold marketing mail shots to acquire new donors and raise awareness. A new strap line The Difference is Demelza will be introduced to the logo and used as a call to action in our communications and fundraising activity. Do it for Demelza - an online resource tool to encourage supporters to fundraise for Demelza. This is a product to replace the Friends Group model which has seen dramatic declines in recent years. The password protected membership site is based on the Macmillan Worlds greatest coffee morning model for recruiting fundraising groups which attracted 51,000 participants and raised 10m in 2011.

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2012 - 2015
11. PR
As a regional charity, Demelza enjoys media coverage locally, mainly from newspapers but also magazines, radio and occasionally local TV. The charity is most well-known in Kent but also get coverage in South East London and also East Sussex. According to the press monitoring agency, Precise there are around 20 articles a month mentioning Demleza in the media and in the last financial year this equated to 653,000 worth of PR coverage. The target for this year is to increase this to over 1 million but more importantly to increase its effectiveness through ensuring it delivers key messages about Demelza to the right target audiences.

Aim
Increase value and impact of media coverage.

Activity
Develop and include key messages in Press Releases. Regional coverage.

Yr 1
Include key messages in PR stories. Nurture key media channels. Monthly reporting.

Yr 2
Celebrity support. Broaden media contacts.

Yr 3

Measures and outputs over 3 years

Increase in value of media coverage. Increase in effectiveness of PR delivering supporters.

Increase effectiveness of social media.

Keep content up to date.

Media training for key personnel. Develop income routes and monthly reports. PR Calendar

Facebook likes increased. Twitter followers increased.

Relevant Information base developed to support communications.

Bank of cost examples developed. Bank of family stories.

Increase Audio visual content.

Video diaries Mobile communications

Easier to deliver communications consistently.

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12. Conclusion
Income Generation has never been tougher but there are still opportunities for Demelza to grow. Growth will come through improved understanding of donors, investment in recruitment of new supporters and improved donor support and re-engagement. The charity needs to be confident and ambitious in spite of the tough economy and competition; and can grow and can win market share if people believe it, and are disciplined in how they focus their efforts and think big when making decisions on investment, risk and innovation. The Income generation department are in a people business and must ensure that the team is developed and motivated as well as focussing on delivering excellent service to supporters.

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