Thursday, May 21, 2009

Charities and Recession on Radio National

Following a rather excellent 'Background Briefing' about charities in Australia, ABC Radio National hosted a pretty interesting show last night. I thought it was great, but am biased.

Some interesting thoughts from the public, and a host who started off pretty negative about face to face (direct dialogue) ended with a positive angle on it.

Check out the program here.

And last weeks Background Briefing here.

Tuesday, May 19, 2009

Innovation in times of stress

FBI used to be my favourite radio station when I lived in Sydney. They are a community radio station and I used to be a donor.

They are in trouble, financially, and have gone out with a great idea 'Ask Richard'. Basically asking people to suggest an idea on how to get $1m from Richard Branson.

Good luck to them! Check it out here.

You can follow @askrichard on twitter - if you are not twitter savvy, this is a good excuse to get into it. Much of it is rubbish like 'Just got up, my bed is so hard. Why am I so tired...!?' but it is easy to get away from that stuff.

There is tons of good information, such as one passed on from Mark Philips (bluefrog) about a 'secret meeting' of top philanthropists; you can read about this meeting here.


Thursday, May 7, 2009

Turn media prices on their heads

Just a thought.

Charity A runs a new program to recruit new donors.
Spend is $30k on development fees and $200k on media (print, online, newspaper ads - whatever).

They recruit 1,000 new donors giving an average of $100 ie $100,000 income.

So they raise a net of -$130,000. In the results report a line will appear that the net cost of the donors was $130 each ie cost per acquisition (CPA) = $130. The projected rollout cost, which has no fees would be $100 per donor.

Now this particular charity knows that with its donor development program it needs to actually recruit donors at $50 per donor to make the exercise worthwhile. So, in this case the job is deemed to have missed target (it failed) and it is back to the drawing board.

But let's not start again.

There is a global financial crisis - media sellers are meant to be struggling. Surely a win-win here is to go back to the media seller and say "We will buy your media again - and we will buy four times as much, but at half the price." They get twice the income, and Charity A's cost per acquisition is now acceptable.

I know it seems naive, but if we all take this approach we can take real advantage of what should be a buyers market. There is no need to screw them - just get the price that works for you.

Anyone succeed at this please let me know. And if you try and fail, let me know too.