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THE BOSTON CONSULTING GROUP

Save the Children: High
Net-worth Individual
(HNI) Strategy
Maximizing impact of HNI donations via
engagement programs
BCG India and Save the Children

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.

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. Child Protection. leading to an immediate and lasting change in their lives. To this end. at appropriate scale and scope. 4. but only with courage. They are 1 Taken from Save the Children India Annual Report 2013 . Save the Children uses advocacy strategies to assist these four areas. Education and Responding to Emergencies and Disaster Risk Reduction1: 1. the promotion of child-centered approaches. advocate and campaign for better practices and policies regarding children's rights and also support the effective implementation of best practices and programs. Their approach (Fig 1) is to develop and provide solutions to problems facing children. Save the Children was started in 2008 is currently working in 15 different states across four different programs – Child Survival. and works to expose and prevent exploitative practices again child labor. they are also involved with the reduction and prevention of exploitation & child trafficking Education program . to ensure a sustainable impact at a large scale. Over and above this. 3. that their welfare is protected. businessmen and academics to bring about policy change."There is no trust more sacred than the one the world holds with children. About Save the Children Eglantyne Jebb had one strong belief. Today. In India. that their lives are free from fear and want and that they can grow up in peace.whoever they are.focuses on developing inclusive and equitable education policies and practices for all children. Lastly. she founded Save the Children in 1919. determination. 2. Child Survival program . with programs in more than 120 countries around the world."She believed that change is possible. 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." – Kofi Annan I. "that all children . and that they provide high quality programming for the most vulnerable children and their families. Save the children has also started child labor prevention programs. Their mission is to inspire and change the way the world treats children. 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. as well as focusing on Early Childhood Development.have the right to a healthy. emergencies and conflict. the organization is the leading independent organization for children. There is no duty more important than ensuring that their rights are respected. imagination and good organization. wherever they are . happy & fulfilling life. they use experiences from the field to lobby with government bodies.

Those more engaged in philanthropic activities include those who have set up their own foundations and are actively fundraising. healthcare and protection especially during emergencies. This erratic communication becomes a disincentive for donors due to the lack of transparency in the impact their donation has caused. during critical emergencies like floods and storms etc. global funding bodies.91 lakh children received protection from harm and also raising awareness amongst 6. 2. communities.562 villages to provide education. though small in contribution. as compared to almost 9 lakh children in 5000 villages in 2012 Helping around 2. Also. In 2013. which is an exponential increase from the previous year Ensuring 3. as well as individual donors are also active contributors. both local and global. Lastly. most NGOs are not focused on communication with donors – a very small majority of NGOs even send out regular newsletters. 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. Corporate partnerships. 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. Of this group. Online fundraising. Providing 10 Lakh children and their families with access to life-saving healthcare services.31 lakh children and their families. they have been able to impact the lives of children in India by2: 1. 6. which can become problematic when trying to sustain donation figures. Much of charitable giving is also based on religious communities and is family centered. 3.5 lakh children more than in 2012 receive quality education. 4. Reaching over 12 lakh children across 6. is gaining momentum in India. but only a fraction of this is being tapped.33 lakh adults with the knowledge and resources required to help keep children safe Providing emergency relief and rehabilitation support to 3.successful in this approach by collaborating with children. when communication is 2 Taken from Save the Children India Annual Report 2013 and 2012 . It also shakes the credibility of the organization. II. to work towards their goal. 5.452 children by removing them from participating in harmful childlabour practices and facilitated their getting back to school and to other child protection schemes 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. Who is donating the money and on what basis? Though the private sector plays a key role. promote the cause and build capacity. Philanthropy in India The current state of philanthropy in India is such that there is a lot of potential for donations. even fewer NGOs keep donors involved with the impact of their donations or donations in general. – these efforts were more than doubled from the previous year Rehabilitating 71. governments and the private sector to share information.

The most common standard for HNI used in India is to consider those individuals that earn 25lacs or more per year as HNIs. "…at least 2% of the average net profit of the company made during three previous financial years must be spent on CSR activities. events. if utilized to its maximum potential. Source: www. The convenience of being able to donate from the comfort of your own home is definitely a strong pull factor. which increases the risk of donors being dissatisfied with the impacts created. III. it became clear to Thomas and Irwin that customizing a program for HNIs would of the utmost importance. 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. donors are unable to understand the complexities of the sector and the choices made by the NGO.weak. among other ideas." will lead to more compulsory funding from the corporate sector. and appeal to their sense of philanthropy by marketing the impact their donations would make. especially in the USA and UK. the marketing team decided to create mass market portfolios for individual donors. The aim was to target the middle class. Investible surplus. In 2009. the more NGOs communicate. IV. newsletters. Save the Children have been able to capitalize on legacy planning portfolios. the more willing donors are to fund them. In 2011. HNI activity in different markets Foreign markets The idea to focus efforts on HNIs in India came about because Save the Children has been very successful in other geographies. or liquidated assets. as well as involve them with Save the Children on a more permanent basis. Thus. donations started coming in. ranging from double digits to lakhs of rupees. in which the organization tied up with financial institutions and linked certain proportion of funds from 3 While there is no standard definition of HNIs. As expected. a relationship management expert was hired to run the portfolio. The program was to promote donations from existing and new HNIs donors. This resource was hired from the banking industry. Over the course of two years. the awareness and use of online donations is much lower than more developed countries like the US and UK. in the US.icicidirect. After doing some simple calculations.com . interested HNIs3 would each donate 1 lakh or more. The new legislation stating. Another part of his role was to develop innovative and relatable products that could be marketed to HNIs either individually or through campaigns. Foundations are growing which are empowering new people to get involved in philanthropy. more structured forms of philanthropy are becoming common. His role was one of a relationship manager. Over the years. The introduction of new applications for phones and secure-pay features online. updating them about Save the Children and how any donation would help the organization and associated children. Additionally. assets under advise. 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. However. they can be based on Net Worth. have allowed money to be donated more readily over the internet. For example. to go into the field and speak to HNIs. as he had previous experience in wealth management of HNIs. at little or no cost.

HNIs to be donated to Save the Children upon death. his time at Save the Children was short. As of 2011.25lac or more (for detailed income distribution. 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. A benefits list based on the level of 4 BCG Perspectives. by accessing the network of an existing donor who was a doctor in a prominent hospital. 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. The club was to have city chapters. donations are at 60%. 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. Thomas wanted to replicate efforts in India. he attempted to create a cohesive portfolio. have an annual income of Rs. as in the case of emergencies. In the UK. to an Indian context. By 2020. 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. With India's population growth and economic promise. For example. comprising of major donors. the percentage of HNIs in the country is increasing exponentially (Refer to Fig 2 B for more details). between 2008 and 2009. Before he left. or HNIs. individual charitable donations in the US are around 75% of all private funding. Phone calls were made to potential HNIs and meetings set up for new and existing HNIs. adapted of course. Brainstorming sessions were also held around fundraising events and how they could work. Structured donor visits to different sites and meetings or seminars with the CEO were also planned. For more immediate needs. The Indian market The affluent. Annual private charitable giving was estimated to be between $5-6billion in 2006. What worked and what didn't What worked: Indian HNI initiatives were started in 2011. Seeing this. V. He began to contact the existing donors identified as HNIs. The 2010 World Wealth Report by Capgemini and Merill Lynch state that our wealthy population is growing at 50%. handwritten notes or addressed mails. please refer to Fig 2 A). was detailed out to engage with them more directly. with members being given personal attention via calls. Members were divided into different levels based on their contribution. meetings. The Leadership Club – A strategic initiative: A plan for a Leadership Club. The Tiger Roars: Capturing India's Explosive Growth in Consumer Spending . Starting with a welcome back and personalized calls to keep in touch. with the hired expert. India's affluent class will be larger than the entire population of Canada4. However. He also sought to build a 'wishlist'. The new resource was also able to use his references from his banking work to help Save the Children gain new donors.

The efforts on who to target were not based on a strategic model – if he felt a large amount could be spent. project visits followed by a description of the funds needed for successful completion of the project. or experience a defined customer journey. renewal requests. However. but also to roll-out efforts they have planned in . as these individuals were known to the resource. and there was incomplete knowledge of the market size. A rewards and recognitions program was also planned. the biggest issue with all these initiatives is that they were not structured.contribution was also detailed out (refer Fig 3. After the doctors contributed to the mobile health unit. Save the Children's work is evolved around the response to an emergency that occurs. Donations were brought about via references. annual achievements. thus no marketing or advertizing of these took place. 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. Lastly. no engagement program was implemented to keep donors updated on what was happening at Save the Children. There were also plans to award the inaugural members as 'Charter Members'. Media coverage would create a sense of urgency to donate which can be leveraged. Neither was an incentive program or a team structure for employees created. 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. What didn't work: However. the leadership plan was never implemented. as well as discussions around identifying potential new members and inviting them to join the club (Fig 3. monthly updates. However. acknowledgements to major contributors were planned. there was no continuity. to clearly show the number of pledges needed to raise the required funds. representatives would go and talk to donors and take them through a work plan for what Save the Children were planning to do. However. D). In terms of communication with members. For emergency relief efforts. Also. he was not able to push to sustain the high annual figures. to acknowledge their commitment to Save the Children. VI. but no detailing of this took place (Fig 3. A fundraising calendar was set up to keep track of events. there was no follow-up on trying to expand this program. the funding size started decreasing. project updates and newsletter send-outs (refer Fig 3. nothing was taken forward. B). he focused on them. no products were created during the tenure of the resource. Though the Leadership Club initiative was planned out. C). E). A)). no such initiative has taken place yet. including meeting with the Board and CEO. 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. Though talks of hiring someone experienced in product creation was considered. A Gift Range chart will be introduced for this purpose. an event for the inauguration of the club was created. campaigns.

Save the Children has also asked us to create an overall strategy for bringing HNIs on board by innovation in marketing. It's impossible only if we make it so.new sectors. 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. It’s impossible only if we refuse to attempt it. which could potentially also tap into a new customer base. Linked to this. funding. changing the current Leadership Club program to make it more impactful. and emergency relief protocols. "Save the Children is often told that its aims are impossible – that there has always been child suffering and there always will be. Strategies for this can include (but are not limited to) ways in which existing customers can be used as advocates. creating a new program for existing and/ or new HNIs. To do this." – Eglantyne Jebb . they have asked us to estimate the current Indian market size for funds. product creation and engagement. We know. while also being sustainable in the long run. Thomas is seeking innovative ideas which can create a delta difference in performance. As part of this project.

in website Fig 2A: .Appendix Fig 1: Source: Savethechildren.

please go to: https://www.Fig 2B: For the full report. Their experience with SC will be more personal one.999 Bronze INR 200. 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. it will be personalized and specific whenever possible.00 to 999. There will be city wise chapters of the club.00 to 199. A) Contribution Levels: The Club will be further divided into classes based on the level of contribution: INR 100. Delhi Chapter. Mumbai Chapter. This will be a progression from donor to major investor in the field of Child Rights. When this group is sent mail.com/content/articles/consumer_products_retail_the_tiger_roars/ For detailed figures on household income data.bcgperspectives.00. often hand addressed on higher-quality stationery with first-class postage. relying less on mail and telemarketing and more on personal contact.000 and above Platinum . for eg.00 to 499.999 Silver INR 500.999 Gold INR 10.

The Benefit list that forms a part of the Welcome Pack Benefits Checklist and Strategy Worksheet Benefit Bronze Silver Gold Platinum SC Leadership Club Membership logo * * * * Exclusive annual recognition event * * * * Listing on donor wall (A donor wall will be developed in the SC website) * * * Day Sponsorship Opportunity (Where they can interact and sponsor a day's event in a center) * * * * * Recognition in annual report Luncheon with CEO or Board Chair and/or celebrity interaction * Invitations to SC events * * * * Special Quarterly Newsletter * * * * Programatic exposure of SC projects * * * * SC publications and Assessment reports * * * * .

The update sent in the beginning of the year will comprise of previous year’s achievement on The Leadership Club’s vision. There will also be an ‘insider news letter’ sent out quarterly only to the Leadership club members. There will be invites that will be sent out to prospects to join the Club all through the year. Monthly updates will give brief overview of the entire Save the Children intervention. acknowledgment to major contributor. This invite may also be sent to the existing donors (though not at the same time of renewal request) who donate close to INR 100. The envelope and letter heads used for correspondence of The Leadership Club will have distinctive appearance. This will also be a motivation for the members to upgrade to a higher class. mail dates. telemarketing campaigns and email campaigns. This report will also contain up-to-date information on achievement of Leadership Club’s annual vision.B) Fund-raising Calendar: A fund raising calendar will be used to track event dates. . D) Correspondence with the Leadership Club There will be a defined annual ‘vision’ for The Leadership Club that will be planned in concurrence with all the members of the Club. introduction of new members. overall Save the Children’s achievement and acknowledgement to the Club.000 every year. 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 C) Rewards and Recognition The reward and recognition level of the members of the Leadership Club will be based on the class they belong. The stationary will have ‘The Leadership Club’ mentioned on them.

or they have no children. Affinity or how well do they like Save the Children (SC)? Assign each donor a ranking of 1. After addressing 9s and 6s. Children are beginning their own careers. 2. Prioritizing method: I. They are the most committed. 1 They are young. either they need to become more committed to SC (something that can be influenced). Ranking: The Product of the Two Multiply these two numbers together to get one of the following combinations. The former is not worth addressing now. Wealth is not yet certain. Wealth is certain. but the latter definitely needs to go on the list for long-term cultivation. we will focus on this group. they are ready to dispose of wealth 2 They are at the peak of their career. II. or 3 indicating the strength of their commitment to SC.There will be Welcome Pack containing benefit information. they are not yet disposing of their wealth. matching gift information. visualized in the Moves Management Prioritizing Grid: 9 These are the prospects. and are most ready to give. The existing and prospective major donors will be classified as per the prioritization grid. will be developed. have the greatest disposable wealth. 3 Either they love SC but can’t give. starting their own families. 3 They have been donating regularly over the past two years. 3 Their children are grown and self-sufficient. 2&1 Probably not worth pursuing now. 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. III. 4 Need both to like SC better and to be in a better position to give. Spouse is healthy or deceased. 2 They have donated for the first time during emergency 1 They have not donated to SC in the last two years but have donated before that. but will follow later. mid-way through their career. or 3 indicating the strength of their commitment to SC. 6 These come next. etc. their inheritance is expected. . or they can give but hardly know SC. 2. children are still at home. Life Stage or where are they in their life? Where are they in their life in terms of ability to make a major gift? Assign each donor a ranking of 1.

There will be a ‘Four Pager’ note describing the project and a ‘Gift Range Chart’ that will reflect the amount and the number of pledges needed to raise the total budget to support the project for a year. Rohit Bhasin and Subir Gupta) who have shown interest to be a part of the club. 6s will be cultivated for next level. These members will be made the ‘Charter Member’ of club as a distinction to recognize their ongoing commitment. In Delhi. There will be an audio visual that will be created from their visit which will be presented in the event along with the welcome pack. Prior to the event there will be a project visit by some of the members of the club. 3. 3s and 4s are going to take some time and effort.000 4 1200000 Secured to date .000 INR 500. There will be an event planned in the month of June.s and 4s are taken care of. Defer work on 1s and 2s until 9s. Jaiveer. Currently this has been discussed with four major donors/prospects (Bimal Tanna. 4. Of Gifts to secure No. 2014 where the members will meet and formally inaugurate the club.Moves Management Prioritizing Grid 3 Affinity 3 love SC but can’t give 6 love SC and might give 9 love SC and can give 2 2 like SC but can’t give 4 like SC and might give 6 like SC and can give 1 1 Know SC but can’t give 2 Know SC and might give 3 Know SC and can give 1 2 3 Rules/Lessons: 1. New membership to the club is only through introduction by the Charter Members. of Gifts Still To Secure Total INR 10 lac 1 1000000 INR 800. 2.000 2 3 1600000 1500000 INR 300. The members will get to meet the Chairman of the board and the CEO of SC in the event. Inauguration will also give a defined vision of the club which will be evaluated in the annual meet. Depending on their response they will be explained about the role of the club and the impact it intends to create. 6. The Gift Range Chart will look as follows: Pledge over 1 years No. we will consider the Hugo Boss project for the project visit. F) Inauguration of the Club Invitation card will be designed and sent out with details about the club to the current Major donors of SC. 9s will be followed regularly.

The Mumbai chapter event may be combined with the Tobbell’s event.000 7 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. We will also see all board members references and Campaign team’s support for celebrity and signature names in the club.INR 100. .