Using the Community Compass to focus your fundraising

Win celebrate excited

The Community Compass Report is not only a fascinating piece of research, it is vital information for anyone who has a role in fundraising in the not-for-profit sector.

The research, which was commissioned by Our Community and the Community Council for Australia and undertaken by Dr Rebecca Huntley for 89 Degrees East, was developed, funded and now published with a very clear call to action.

Community Compass report
Tap to access the full report

As the Assistant Minister for Charities, Dr Andrew Leigh, wrote, “It challenges policymakers, community leaders, and citizens alike to recognise the contributions of the community sector.”

The report provides important evidence that community fundraisers can use when they need to:

  • advocate for resources and reform
  • cultivate greater levels of support from government and key stakeholders
  • support Australians to connect with and engage with their community.

We must use this information to boost our fundraising efforts, be more strategic in our approach to running community organisations, and engage and support those within our community who have a greater capacity to give time, knowledge and (importantly) funding.

Using segmentation to fundraise more effectively

The Community Compass report uses an audience segmentation ‘compass’ – a tool that has been traditionally used to understand, engage, target and mobilise audience cohorts, particularly when it comes to advocacy, action and behaviour change campaigns.

The compass sets out:

  • what different people care about and believe in
  • specific opportunities and challenges for engaging and communicating with each segment.
Community Compass segments breakdown
The report found Australians' attitudes could be divided into six segments.

This research ‘key’ can help you to unlock additional support for your community organisation, whether that means additional volunteering hours, more knowledge and guidance to increase your impact, or increased funding at a time when the rise in the cost of living means your organisation is probably experiencing great demand for its services.

The six points of the compass are:

Enthusiastic Engaged (20%)

The strongest supporters of the community sector are socially connected and are active contributors to community organisations.

Positive Preoccupied (16%)

The Positive Preoccupied are broadly supportive of the community sector but contribute less regularly. They are more likely to be juggling work, raising children and other responsibilities and feel they lack the time and energy to be more involved.

Isolated Believers (16%)

The Isolated Believers have a positive view of the community sector despite being the most economically and socially vulnerable segment. They support community organisations speaking out on social and political issues but believe service delivery should be prioritised. Many would like to be more involved but face barriers to contributing.

Active Traditionalists (17%)

The Active Traditionalists are very community-focused and are actively contributing to the sector at higher rates than average. They hold broadly conservative values and their traditionalist mindset shapes their belief that the role of the community sector is to care for those in need rather than getting involved in politics.

Indifferent Uninvolved (20%)

The Indifferent Uninvolved aren’t thinking about the community sector. They are relatively socially connected and express insular values such as ‘having fun’, ‘treating and rewarding yourself’ and ‘being successful and achieving goals’.

Begrudging Bygones (10%)

The Begrudging Bygones are more likely to be contributing to their community but have a pessimistic view of the community sector and society as a whole. They don’t think the sector should receive government funding.

      
"What inspires someone to become and stay engaged and enthusiastic about an organisation, a leader or a program will be different for every funder."
Catherine Brooks
Fundraising strategist Catherine Brooks

The practice I manage, Wendy Brooks & Partners, works with organisations to help them increase the number of their supporters that fall under the definition of “Enthusiastic Engaged.”

This group cuts across multiple market segments, including trusts and foundations, mid-major donors, gifts in wills, and even regular donors – the average Australian regular donor gives $33 per month and may become part of the pipeline of gifts in wills.

There are thousands of trusts and foundations in Australia, and even more private ancillary funds (PAFs) and public ancillary funds (PuAFs). Your organisation will need to first work out what trusts and foundations match your focus areas and can give in the ways that your organisation requires, and then determine how to best build relationships with those funders to maximise your ability to gain a return on investment.

Those trusts and foundations that meet the requirements of ‘best chance funders’ are those that:

  1. want to fund in the areas in which you’re working
  2. have available the level of funding you need to create the impact that you’re looking to make
  3. are willing to meet with you and your leadership team to build up the necessary trust and rapport that it takes for the funding to transfer to your organisation.
Attitudes on the role of the community sector infographic
Each segment displayed a slightly different understanding of the sector.

What does it take for a donor to become ‘enthusiastically engaged’?

Thumbs up
Consider ways to encourage more "enthusiastic engaged" supporters.

At a recent event we asked some of our key donors to provide an example of a project or organisation they had funded that they felt proud to have supported. Their responses were fascinating:

  • “We funded a really small organisation, female-founded and -led, and the numbers are just phenomenal. With so little they can reach so many children and make such a big difference in the lives of families in our community”. – Tiny Dots funder
  • “We love how commercially minded Thread Together is. They have an answer to every problem or question, and our team can go in and volunteer and really understand the power of their work by touching and sorting the clothes that will be sent out to people in need. Plus it’s brand new clothing, which gives people such a sense that they deserve it.” – Thread Together funder
  • “We funded Girls on Fire because it just made so much sense. They connect young people with cultural immersion and fire safety programs, which teaches them about how to give back to their community. The passion of the founder and her relentless commitment is what makes me want to keep donating and supporting them.” – Girls on Fire funder

What inspires someone to become and stay engaged and enthusiastic about an organisation, a leader or a program will be different for every funder, but there are some commonalities:

  • The CEO and or chair of the organisation connects on a personal level with a key decision-maker at the trust or foundation.
  • There is a way for that bond to develop – e.g. through experiential fundraising (where people get to experience what it’s like to be homeless, or volunteer side by side those with lived experience) or site visits, or relationship development at the leadership level that really brings that passion and impact to life.
  • The organisation delivers. One of the organisations we have worked with that has been most successful at fundraising turns every dollar into three. They’re just so good at operating in a way to maximise the impact of the funder’s dollar. And that is seen, felt and heard by the funder, which only makes the donors want to give more to that organisation.
  • Regular communication during the life cycle of fundraising (i.e. strong donor stewardship of the funding and relationship).
  • Thanks and real appreciation. We know we have to thank someone seven times before they will give again. For a donor to be enthusiastically engaged they need to feel appreciated, and a simple thank you can go a long way.

Next steps

Here are some practical steps you can take to harness the power of enthusiastically engaged supporters and create more of them:

  • Write a list of the people or organisations that are socially connected with your organisation – perhaps they pop in and volunteer, or always buy a table at your Mother’s Day lunch, or are on the other end of the phone when times are tough. These are your people and you need to think about how you’re going to bring them into the fold and continue to harness their collective power to take your organisation to the next level. For example, consider setting up a Donor Circle, where they can be exclusive members and commit to contributing a certain amount each year to add to your revenue stream and support core operating costs.
  • Thank your supporters. About that list of people and organisations – when was the last time you thanked them? Pick up the phone, touch base and say thank you. Don’t make an ask or take up their time but make them feel appreciated. You could consider hosting an informal afternoon tea to say thanks, or meet people for one-on-one coffee and cake, or send them a simple thank you card. You don’t need to over-think it but you must commit time to thanking your supporters to keep them enthusiastically engaged. Set aside time each week to do this and you’re well on your way to making donors feel appreciated.
  • Identify new supporters who have the potential to be enthusiastically engaged. Board members should help you with this identification process, so recruit well-connected board members who are willing to speak about your organisation within the community. Set up your CRM so you can capture data about those who are interested and connected. Use that data to write to those individuals and tell them about the need that you’re meeting in the community. No data without stories, no stories without data. Keep growing your pool of supporters while continuing to thank and nurture your existing ones.
  • Get to know your supporters and potential donors. One of the most successful CEOs we have worked with kicks it out of the park when it comes to generating funding for his organisation. He told me he spends 50% of his time on fundraising. In recent years he has been able to hire a fundraising manager, but he still attends the donor meetings, the thank you afternoon teas, the events that the organisation runs for donors. In this way, he is keeping abreast of the donors’ focus areas, their passion projects, and taking in feedback about how the organisation can connect with their donors better. The organisation has now built up such a strong rapport with its major donor support base that it’s able to ask for big sums of money to support its capacity, not just for funding for specific projects.
  • Emphasise donor stewardship. We know it costs seven times more to get a new donor than it does to keep an existing donor. And you’ve got no hope of winning multi-year funding grant rounds if you don’t first show that you can thank, engage, recognise and accept feedback from donors during the life-cycle of a grant. Put in the hard yards first, and then benefit from the longer term rewards that good donor stewardship can offer.
  • What other ideas do you have to harness the power of your enthusiastically engaged supporters and grow that pool of people? Add this question to the agenda for your next board meeting, and add the Community Compass research report to the board papers.

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