Professional Documents
Culture Documents
In 2009, Save the Children India began to create mass market portfolio for donors in the
hopes of increasing their funding. Though funding started coming in, Thomas Chandy, CEO
and Irwin Fernandes, Marketing and Fundraising Head, realized that customization of
portfolios for different segments of donors could provide more fruitful results. Specifically
targeting High Net Worth Individuals (HNIs), they initiated efforts to create a portfolio for this
segment, including hiring someone who is an expert in managing relationships with HNIs to
help create the portfolios. However, for several reasons their efforts did not generate the
kind of traction and pull expected. Still, they are dedicated to the idea of HNI-targeted
portfolio, but feel a more coherent strategy needs to be developed for this to be successful.
"There is no trust more sacred than the one the world holds with children. There is no duty
more important than ensuring that their rights are respected, that their welfare is protected,
that their lives are free from fear and want and that they can grow up in peace."
Kofi Annan
I.
Eglantyne Jebb had one strong belief, "that all children - whoever they are, wherever they
are - have the right to a healthy, happy & fulfilling life."She believed that change is possible,
but only with courage, determination, imagination and good organization. To this end, she
founded Save the Children in 1919. Today, the organization is the leading independent
organization for children, with programs in more than 120 countries around the world. Their
mission is to inspire and change the way the world treats children, leading to an immediate
and lasting change in their lives.
In India, Save the Children was started in 2008 is currently working in 15 different states
across four different programs Child Survival, Child Protection, Education and Responding
to Emergencies and Disaster Risk Reduction1:
1.
2.
3.
4.
Child Survival program - Save the Children works with local communities and
government health systems to improve child and maternal health care and
accessibility to health care
Child protection program Works to protect children affected by natural disasters,
emergencies and conflict. Save the children has also started child labor prevention
programs, and works to expose and prevent exploitative practices again child labor.
Lastly, they are also involved with the reduction and prevention of exploitation &
child trafficking
Education program - focuses on developing inclusive and equitable education
policies and practices for all children, as well as focusing on Early Childhood
Development, the promotion of child-centered approaches, training teachers and
helping communities to develop close linkages with schools
Responding to Emergencies and Disaster Risk Reduction their goal is to ensure
that emergency responses that are timely, at appropriate scale and scope, and that
they provide high quality programming for the most vulnerable children and their
families. They want to increase preparedness of children and their families for
emergency situations in the aftermath of natural disasters through child-centered
and community-based approaches.
Save the Children uses advocacy strategies to assist these four areas. Over and above this,
they use experiences from the field to lobby with government bodies, businessmen and
academics to bring about policy change. Their approach (Fig 1) is to develop and provide
solutions to problems facing children, advocate and campaign for better practices and
policies regarding children's rights and also support the effective implementation of best
practices and programs, to ensure a sustainable impact at a large scale. They are
1
2.
3.
4.
5.
6.
Key supporters to enable these impacts have been primarily from Institutional partnerships
like the Bill and Melinda Gates Foundation and bilateral or multilateral institutions like
USAID. Corporate partnerships, both local and global, as well as individual donors are also
active contributors. Online fundraising, though small in contribution, is gaining momentum in
India.
II.
Philanthropy in India
The current state of philanthropy in India is such that there is a lot of potential for donations,
but only a fraction of this is being tapped. Those more engaged in philanthropic activities
include those who have set up their own foundations and are actively fundraising. There are
also a significantly large number of small charities located in small localities that are
concentrating on the rights of the poor and underprivileged.
Who is donating the money and on what basis? Though the private sector plays a key role,
global funding bodies, corporates under CSR and wealthy individuals that are interested in
or have connections to the fundraising body are few in number and highly sought after.
Much of charitable giving is also based on religious communities and is family centered.
Also, most NGOs are not focused on communication with donors a very small majority of
NGOs even send out regular newsletters. Of this group, even fewer NGOs keep donors
involved with the impact of their donations or donations in general. This erratic
communication becomes a disincentive for donors due to the lack of transparency in the
impact their donation has caused. It also shakes the credibility of the organization, which can
become problematic when trying to sustain donation figures. Lastly, when communication is
Taken from Save the Children India Annual Report 2013 and 2012
weak, donors are unable to understand the complexities of the sector and the choices made
by the NGO, which increases the risk of donors being dissatisfied with the impacts created.
Thus, the more NGOs communicate, the more willing donors are to fund them.
Over the years, more structured forms of philanthropy are becoming common. Foundations
are growing which are empowering new people to get involved in philanthropy. The new
legislation stating, "at least 2% of the average net profit of the company made during three
previous financial years must be spent on CSR activities," will lead to more compulsory
funding from the corporate sector. Additionally, the internet boom in India and use of mobile
phones to connect to the internet has allowed social media to make expanses of people
more aware of different initiatives that are being advertised, at little or no cost. The
introduction of new applications for phones and secure-pay features online, have allowed
money to be donated more readily over the internet. However, the awareness and use of
online donations is much lower than more developed countries like the US and UK. The
convenience of being able to donate from the comfort of your own home is definitely a strong
pull factor, if utilized to its maximum potential.
III.
Save the Children India's efforts to maintain and increase their philanthropy
Save the Children was registered as an independent organization in India in 2008. In 2009,
the marketing team decided to create mass market portfolios for individual donors. The aim
was to target the middle class, and appeal to their sense of philanthropy by marketing the
impact their donations would make. As expected, donations started coming in, ranging from
double digits to lakhs of rupees. Over the course of two years, interested HNIs3 would each
donate 1 lakh or more. After doing some simple calculations, it became clear to Thomas and
Irwin that customizing a program for HNIs would of the utmost importance. The program was
to promote donations from existing and new HNIs donors, as well as involve them with Save
the Children on a more permanent basis.
In 2011, a relationship management expert was hired to run the portfolio. This resource was
hired from the banking industry, as he had previous experience in wealth management of
HNIs. His role was one of a relationship manager, to go into the field and speak to HNIs,
updating them about Save the Children and how any donation would help the organization
and associated children. Another part of his role was to develop innovative and relatable
products that could be marketed to HNIs either individually or through campaigns, events,
newsletters, among other ideas.
IV.
Foreign markets
The idea to focus efforts on HNIs in India came about because Save the Children has been
very successful in other geographies, especially in the USA and UK. For example, in the US,
Save the Children have been able to capitalize on legacy planning portfolios, in which the
organization tied up with financial institutions and linked certain proportion of funds from
While there is no standard definition of HNIs, they can be based on Net Worth, Investible surplus, assets
under advise, or liquidated assets. The most common standard for HNI used in India is to consider those
individuals that earn 25lacs or more per year as HNIs. Source: www.icicidirect.com
HNIs to be donated to Save the Children upon death. Seeing this, Thomas wanted to
replicate efforts in India, adapted of course, to an Indian context.
Annual private charitable giving was estimated to be between $5-6billion in 2006. The 2010
World Wealth Report by Capgemini and Merill Lynch state that our wealthy population is
growing at 50%, between 2008 and 2009. As of 2011, individual charitable donations in the
US are around 75% of all private funding. In the UK, donations are at 60%.
The Indian market
The affluent, or HNIs, have an annual income of Rs.25lac or more (for detailed income
distribution, please refer to Fig 2 A). With India's population growth and economic promise,
the percentage of HNIs in the country is increasing exponentially (Refer to Fig 2 B for more
details). By 2020, India's affluent class will be larger than the entire population of Canada4.
V.
What worked:
Indian HNI initiatives were started in 2011, with the hired expert. He began to contact the
existing donors identified as HNIs. Phone calls were made to potential HNIs and meetings
set up for new and existing HNIs. The new resource was also able to use his references
from his banking work to help Save the Children gain new donors.
However, his time at Save the Children was short. Before he left, he attempted to create a
cohesive portfolio. Starting with a welcome back and personalized calls to keep in touch, he
also introduced the specific impact of donation amounts on the website to create more
transparency on the part of the NGO and more reliability on the part of the donors.
Structured donor visits to different sites and meetings or seminars with the CEO were also
planned. He also sought to build a 'wishlist', one that mapped the top HNIs in the country
and how Save the Children could access them using the networks they were already
linked to.
Brainstorming sessions were also held around fundraising events and how they could work.
For example, by accessing the network of an existing donor who was a doctor in a prominent
hospital, an event was organized with the hospital association to try and raise funds for the
creation of a mobile health unit. Doctors offered monetary support and were willing to
volunteer their expertise in healthcare for the project. For more immediate needs, as in the
case of emergencies, personnel would go and talk to existing and potential donors to try and
get funds for emergency relief and to buy basic necessities to send to the affected area.
The Leadership Club A strategic initiative:
A plan for a Leadership Club, comprising of major donors, was detailed out to engage with
them more directly. The club was to have city chapters, with members being given personal
attention via calls, meetings, handwritten notes or addressed mails. Members were divided
into different levels based on their contribution. A benefits list based on the level of
4
BCG Perspectives, The Tiger Roars: Capturing India's Explosive Growth in Consumer Spending
contribution was also detailed out (refer Fig 3, A)). A fundraising calendar was set up to keep
track of events, campaigns, project updates and newsletter send-outs (refer Fig 3, B). A
rewards and recognitions program was also planned, but no detailing of this took place
(Fig 3, C).
In terms of communication with members, monthly updates, renewal requests, annual
achievements, acknowledgements to major contributors were planned, as well as
discussions around identifying potential new members and inviting them to join the club (Fig
3, D). A detailed plan for the prioritization of new and existing donors was also created to
target those donors that were more likely to donate (refer Fig 3, E). Lastly, an event for the
inauguration of the club was created, including meeting with the Board and CEO, project
visits followed by a description of the funds needed for successful completion of the project.
A Gift Range chart will be introduced for this purpose, to clearly show the number of pledges
needed to raise the required funds. There were also plans to award the inaugural members
as 'Charter Members', to acknowledge their commitment to Save the Children.
However, the leadership plan was never implemented.
What didn't work:
However, the biggest issue with all these initiatives is that they were not structured, there
was no continuity, and there was incomplete knowledge of the market size. After the doctors
contributed to the mobile health unit, there was no follow-up on trying to expand this
program. Donations were brought about via references. However, as these individuals were
known to the resource, he was not able to push to sustain the high annual figures; the
funding size started decreasing. The efforts on who to target were not based on a strategic
model if he felt a large amount could be spent, he focused on them.
For emergency relief efforts, representatives would go and talk to donors and take them
through a work plan for what Save the Children were planning to do. However, Save the
Children's work is evolved around the response to an emergency that occurs. Though talks
began about the possibility of putting in place emergency readiness criteria and a package
that can be taken to donors so the organization can expedite the receiving of funds, nothing
was taken forward. Media coverage would create a sense of urgency to donate which can be
leveraged.
Though the Leadership Club initiative was planned out, no engagement program was
implemented to keep donors updated on what was happening at Save the Children, or
experience a defined customer journey. Also, no products were created during the tenure of
the resource, thus no marketing or advertizing of these took place. Though talks of hiring
someone experienced in product creation was considered, no such initiative has taken place
yet. Neither was an incentive program or a team structure for employees created.
VI.
Problem Statement
The CEO of Save the Children wants to understand the extent of funds they can raise in
India to help not only sustain on-going efforts, but also to roll-out efforts they have planned in
new sectors. To do this, they have asked us to estimate the current Indian market size for
funds.
As part of this project, Save the Children has also asked us to create an overall strategy for
bringing HNIs on board by innovation in marketing, funding, product creation and
engagement, which could potentially also tap into a new customer base.
Linked to this, they have asked us to also present some ideas on how to increase overall
engagement with the current donors to ensure more confidence and satisfaction with Save
the Children. Strategies for this can include (but are not limited to) ways in which existing
customers can be used as advocates, changing the current Leadership Club program to
make it more impactful, creating a new program for existing and/ or new HNIs, and
emergency relief protocols. Thomas is seeking innovative ideas which can create a delta
difference in performance, while also being sustainable in the long run.
"Save the Children is often told that its aims are impossible that there has always been
child suffering and there always will be. We know. It's impossible only if we make it so. Its
impossible only if we refuse to attempt it."
Eglantyne Jebb
Appendix
Fig 1:
Fig 2A:
Fig 2B:
For detailed figures on household income data, please refer to the attached file
Fig 3:
Details of The Leadership Club
Description: The Club comprised of significant Major Donor who would be involved in making
exceptional contribution to the impact made by Save the Children. This will be a progression
from donor to major investor in the field of Child Rights. Their experience with SC will be
more personal one, relying less on mail and telemarketing and more on personal contact.
When this group is sent mail, it will be personalized and specific whenever possible, often
hand addressed on higher-quality stationery with first-class postage. There will be city wise
chapters of the club, for eg. Delhi Chapter, Mumbai Chapter.
A) Contribution Levels:
The Club will be further divided into classes based on the level of contribution:
INR 100,00 to 199,999
Bronze
Silver
Gold
Bronze
Silver
Gold
Platinum
Invitations to SC events
B) Fund-raising Calendar:
A fund raising calendar will be used to track event dates, mail dates, telemarketing
campaigns and email campaigns. The heads of the calendar would be as under:
Activity
Jan
-14
Feb
-14
Mar
-14
Apr
-14
May
-14
Jun
-14
Jul
-14
Aug
-14
Sep
-14
Oct
-14
Nov
-14
Jan
-15
Monthly
Updates
Periodic
Renewals
Special
Appeals
Upgrades
Events
Project
Visits
*
*
Marketing
Website
There will be Welcome Pack containing benefit information; matching gift information, etc.
will be developed.
E) Cultivation of Major Donors
Besides the existing donor base we may also explore some pay sites for information on
prospective major donors of the country. The existing and prospective major donors will be
classified as per the prioritization grid.
Prioritizing method:
I.
Assign each donor a ranking of 1, 2, or 3 indicating the strength of their commitment to SC.
3
They have been donating regularly over the past two years.
They have not donated to SC in the last two years but have donated before that.
II.
Where are they in their life in terms of ability to make a major gift?
Assign each donor a ranking of 1, 2, or 3 indicating the strength of their commitment to SC.
3
Their children are grown and self-sufficient, or they have no children. Spouse is healthy
or deceased. Wealth is certain; they are ready to dispose of wealth
They are at the peak of their career, their inheritance is expected. Children are
beginning their own careers, starting their own families. Wealth is not yet certain; they
are not yet disposing of their wealth.
They are young, mid-way through their career, children are still at home.
III.
These are the prospects. They are the most committed, have the greatest disposable
wealth, and are most ready to give.
These come next; either they need to become more committed to SC (something that
can be influenced).
Need both to like SC better and to be in a better position to give. After addressing 9s
and 6s, we will focus on this group.
Either they love SC but cant give, or they can give but hardly know SC. The former is
not worth addressing now, but the latter definitely needs to go on the list for long-term
cultivation.
2&1
Rules/Lessons:
1.
2.
3.
4.
No. Of Gifts to
secure
Total
INR 10 lac
1000000
INR 800,000
INR 500,000
2
3
1600000
1500000
INR 300,000
1200000
Secured to
date
INR 100,000
700000
TOTAL
17 gifts
6000000
Once the club is inaugurated the flow of events will be as per the calendar that was finalized
in the inauguration/annual event. The Mumbai chapter event may be combined with the
Tobbells event. We will also see all board members references and Campaign teams
support for celebrity and signature names in the club.