International Strategy in Action

It is most encouraging to see how many NGOs nowadays are taking a more thoughtful and strategic view of fundraising in new markets, rather than adopting the follow-the-leader approach that characterised the recent past. Consider, for example, the contrasting approaches taken by one midsized NGO when investing in new fundraising markets in the 1990s and then again in the 2000s.

In the ’90s, one market was opened because the organisation found some overseas supporters on its U.K. database, another because trustees insisted it should be present there, and a third because a competitor had entered the market and seemed to be doing OK. Only the first of these was successful — and only after a long investment period. Even today, this NGO has found it difficult to withdraw from the two unsuccessful markets due to the small numbers of supporters who it feels unable to abandon despite the poor return.

Learning from this experience, when this NGO revisited its international fundraising programme in 2003, it took a far more strategic look at new market potential. Crucially, it carefully considered five key steps:

1. It considered its organisational strategy — where would it need to work in the future to deliver its mission? The organisation made two important strategic decisions that had a major impact on the fundraising market choice: First, it would not enter a market purely for fundraising purposes, and second, it would link its fundraising to grassroots-movement building.

2. It assessed the full picture of global fundraising to understand where fundraising was taking place around the world and where the opportunities lay for market entry in the next three to five years. This “fundraising map” then was overlaid onto the mission map and resulted in a list of eight important mission markets with medium or good fundraising potential.

3. It commissioned fundraising market profiles of each of these eight markets. As well as a broad overview, the organisation looked to see whether the market would give to the cause, whether it could support the particular approach to fundraising (a particular strength in DRTV), how much direct competition was present and also whether the public would be likely to engage actively in building a movement.
From this, the organisation selected three markets with the best potential. This is a critical strategic point that the follow-the-leader approach ignores — a market that works well for your competitor could be disastrous for you. For example, another organisation might have a high-profile brand presence that you do not have; it might have expertise in a particular fundraising technique that the market demands that you do not have.
The fundraising launch point for each market was timed to coincide with the in-country movement-building reaching critical mass; in practice, this meant launching the three markets over a period of four years — and also staying fairly flexible with timing.

4. The organisation included full financial investment modelling. It also developed a detailed year- one test programme, legal requirements and the identification of in-country suppliers.

5. It appointed an experienced fundraising manager. This step was less strategic but no less critical for successful implementation. For the first market, it seconded a member of staff from another market, due to the lack of in-country expertise.

The first two market launches have taken place, and both are proving successful. The organisation has been particularly successful at harnessing movement-building to build its profile and to develop a warm prospect list for fundraising.

It also has been “fleet of foot.” Having researched, modelled and planned as much as it could, the organisation recognised that only a live test would give it the reality of the market. The quality of its preparation meant that it was right about the “ballpark,” but the details of how to translate successful fundraising programmes in other markets to this new market took some trial and error. Its experienced fundraising manager was crucial in markets where agency expertise was limited, so it actually was able to push the fundraising boundaries.

With the third market approaching launch, the organisation now is revisiting the strategic process to identify the next group of markets, as part of its organisational strategic planning. The list of “mission markets” has evolved over the past five years — some have now been deprioritised whilst other new markets have been added.

Fundraising around the world also has changed significantly during this time: Two of the top eight markets might now be too challenging for a new market entrant, but several others have emerged and developed over the same period. In this fast-changing world, it is critical that nonprofit organisations looking to extend their missions and fundraising reach constantly refresh their global views. FS

Reader Panel Redux
As of mid-April, we have 35 folks from nonprofit organizations who have agreed to be part of our new Reader Panel. Thank you all for your interest!

Now we’re looking to populate a second panel — this one made up of staffers at agencies, consultancies and technology/service providers that serve the nonprofit sector.

If you’d like to be part of the group, please send an e-mail with your name, title, company and contact information to the new FS associate senior editor: Melissa Busch at mbusch@napco.com.