Revenue Sources
Step 5 Execute
Your Revenue Resource Plan | Step
7 Educate Other Organizations on How to Grow Their Revenue Sources
Step 6 Verify
Your Results and Make Modifications
Results matter. A revenue source plan can look great
on paper, but if it fails to perform, it is a waste
of time and money. Each revenue source that reveals
evidence of slippage or underperfor-mance should be
addressed early on. Use the following chart as a guide:
Finally, as you implement any new income strategy,
it’s wise to touch base with your key stakeholders
to be sure they are with you in this move. Stakeholders
include your board, key donors, key partners or alliances
and a handful of clients or constituents. Their reactions
to the strategy, its timing and costs are a helpful
touchstone as you are implementing your plan.
| Revenue
Source Corrective Action Chart |
| Revenue
source |
Underperformance
symptoms |
Diagnosis/Corrective
action suggestions |
| Annual or sustaining gifts |
Low average gift; low response rate;
high number of bad addresses |
Eliminate the possible problem by
trial and error. Is it the list of names, the offer, the
signor, the package copy/design or a poor choice for direct
response? May require a consultant to quickly diagnose
and solve. |
| Major gifts |
No meeting appointments are happening;
asks are taking place for low amounts of money; volunteers
are reverting to annual asking techniques |
Either poor prospect qualification
and or poor skills training in getting an appointment,
asking and closing. Prospect qualification requires time
as does skill training. |
| Planned gifts |
No plans are written; requests for
information are not turning into leads for meetings |
Passive staff and poor lead generation
system. Must get the staff into the field and out of the
office. |
| Foundation grants |
Many letters are going out (and some
proposals), but no money is coming in |
Misunderstood grantsmanship. Attend
grant-writing seminar. Involve board in back-door contacts
with foundation directors. |
| Cause-related marketing |
No money comes in from the CRM |
Poor contract. Re-negotiate contract
terms; work backwards from the company’s outside
limit (point where they say “no”). |
| Corporate giving |
Many letters are going out (and some
proposals), but no money is coming in. |
No
senior level-to-senior level con-
tacts. Initiate top level cultivation for
board/CEO. Understand quid pro
quo.
|
| Earned income |
No product sold/no leads |
Either a poor business idea or poor
execution of a good idea. Create incentives for people
to perform. |
| Unrelated earned income |
No product sold/no leads |
Either a poor business idea or poor
execution of a good idea. Create incentives for people
to perform. |
| In-kind |
A few small gifts come in |
Passive staff and poor lead generation
system. Must get the staff into the field and out of the
office. |
| Supporting organizations |
Many meetings but no firm commitment
to raise funds |
Leadership does not support. Must
work with leader to create a gain/gain situation. |
| Benefits |
Poor attendance; wrong people attending;
no money raised |
Poor initial design; wrong leadership;
bad date and/or location. The event leaders in a city
must help design and position the event. And it must be
built with fundraising at the core. |
| State and Local municipalities |
Many meetings but no firm commitment
for funds |
Key legislator must support this and
see the political value. |
| Churches and denominations
|
A few meetings, long silence and no
firm commitment for funds |
The pastor must support this in order
to receive funds. |
| Federated funds |
Low average gift; low response rate;
high number of bad addresses |
Passive staff and poor marketing sense.
Must get the staff working with the campaign/federation
staff. |
|
|
|
|
Step 5 Execute
Your Revenue Resource Plan | Step
7 Educate Other Organizations on How to Grow Their Revenue Sources
