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Development
Development provides a significant part of the revenue for ABC. Membership
is the leading category, followed by Underwriting, Grants and Proposals, and Workplace
Giving Campaigns. Each area has presented successes and challenges over the past
year.
Membership
The single most important revenue stream for ABC is membership. Members’
contributions allow ABC to provide the services articulated in its mission. Membership
is a way for ABC to get information and resources out to large numbers of people
and for them to participate in a meaningful way with ABC.
ABC formally launched membership at the beginning of 2001. Since then, benefits
for all levels have evolved to include access to members-only online information,
free research from our education department, discounts on books, complimentary
educational material, and other services. HerbalGram continues to be
a benefit at all levels of membership and the most desirable benefit for lower
level members.
Companies who financially support ABC are Sponsor Members. Sponsor members receive
numerous benefits depending on their level of support. These benefits include:
the full HerbClip Mailing Service, a link to their website, additional consulting/networking
services, and many others. When a company wants to forge a close relationship
with ABC, use Mark Blumenthal as a speaker at an event, use our education department
for research, use ABC to produce specialized literature, or produce a continuing
education module in their field, they are asked to become a Sponsor member.
At the end of October 2003, ABC had 2,816 active paying members. This compares
with 2,686 in October 2002. This represents an increase in total number of members,
and we have improved the renewal rate in the past year. The overall renewal rate
in for FY2002 was 50%. For FY2003 the overall renewal rate is 66%. This year we
implemented a renewal phone campaign, as well as clearer explanations of benefits
on renewal notices.
For FY2003, an average of 42% of new members joined online, 17 onverted from
expiring HG subscriptions, and 13% joined by phone. In addition to these ongoing
efforts via phone, HerbalGram, website, and mail solicitations, new avenues for
recruiting new members are being created. In particular, we would like to put
more emphasis on providing membership and other ABC promotional materials to herbal
and natural product industry conferences and trade shows, educational and scientific
seminars that Mark attends, and events listed in HerbalGram and website calendars.
We will also be deciding on new benefits that can be provided to members.
Membership goals for FY2004 include:
• Increase total number of members by 10
nd renewal rate by 5%.
• Create new member benefits and other incentives.
• Increase total Sponsor Member support by $100,000
• Research development of an e-mail communication system for members to
apprise them of new developments, press releases, etc.
Underwriting and donations
Underwriting has always been an important part of ABC’s revenue stream.
Pledges are also received from individuals and companies for general ABC’s
support. Underwriting funds for 2003 included General Donations and Capital Campaign.
General Donations include various campaigns like the Media Education Campaign,
fundraisers, etc.
The Media Education Campaign was first launched in the middle of 2000 in response
to numerous factors: negative media focusing on alleged failures found in studies
and exposés, lack of positive coverage on the benefits of herbal medicine,
clarification of confusing or misleading stories, etc. ABC was the first organization
in this arena to create a media education effort and was initially successful
in raising funds for this effort.
Funding is usually obtained to help pay for distribution of press releases
on timely topics. New funding for this effort has diminished from 2001, but request
for additional funding for Media Education is only requested if full Sponsorship
is provided. Numerous companies have noted the great value they have received
from ABC press releases and media alerts. In some cases, this resulted in increases
in Sponsor Membership and/or increases in funds being identified as MEC.
Underwriting goals for FY2004 include:
• Increase Media Education revenues by 100 r>
• Pursue underwriting opportunities with other organizations
Grants and Proposals
In general, like many nonprofits, ABC seeks funding from foundations, organizations,
corporations, and individuals. Foundations and some corporations are solicited
through a formal proposal process and specific projects. ABC’s philosophy
for seeking funding through these avenues has generally been to find funding for
programs and projects that are ongoing or already in process. At times, when a
new project makes sense for ABC and funding is available, the organization may
go in a new direction. The Safety Labeling Program is an example. Most proposals
are sent to larger regional or national foundations and funding agencies. Most
foundations that provide funding for healthcare-related causes look for organizations
that deal with specific diseases, conduct clinical research, or provide direct
human service, none of which describes ABC. Many foundations have had a significant
decrease in their funds, due to the downturn in the economy, changes in tax laws
and changes in attitudes after terrorist activity. ABC submitted 4 proposals to
foundations and organizations in FY2003, two of which were funded for a total
of $4,000. We are working with M.D. Anderson Cancer Center (MDA) in Houston, and
wrote sections of two major grant proposals submitted to the National Institutes
of Health to provide herbal medicine educational services. Response is expected
in 2004.
ABC will continue to research this area of revenue development. Research will
continue into the types of foundations to target and we will focus on those that
are interested in promoting health care and/or continuing education. ABC encourages
trustees and advisors to assist with contacting any foundations with whom they
have relationships.
Workplace giving campaigns
ABC has participated in Federal, State, and corporate employee workplace giving
campaigns since 1999 through membership in various federations of charities. The
most important of these, the Combined Federal Campaign (CFC) is the annual fund-raising
drive conducted by Federal employees (military and civilian) in their workplace
each fall. The CFC is also the only authorized solicitation of employees in the
Federal workplace on behalf of charitable organizations.
Starting in 2000, ABC became also known as the Herbal Medicine Institute (HMI)
to provide a name more descriptive of the organization’s services to workplace
giving participants who select charities from long lists of organizations. In
January 2002, HMI (ABC) applied and was accepted as an independent organization
in the CFC.
In October 2002 ABC (as HMI) was accepted to participate in the 2003 CFC through
the Independent Charities of America (ICA). ABC has chosen to participate in the
2004 campaign through ICA as well. In addition to participating in the CFC, ICA
also participates in the corporate workplace giving campaigns of employers such
as HP Corp, Chevron/Texaco, Gannett Corp, Army Times Publishing Co, the Washington
Post, Lockheed-Martin, and other UWNCA corporate accounts.
Volunteer Services
ABCs volunteer program had a good year with approximately 50 people donating
their time and energy. We hosted individuals as well as several large groups for
one-time projects including groups from the University of Texas and Dell, Inc.
The majority of volunteers worked on garden projects.
Volunteer recruitment activities include registration on several volunteer
websites and at community events in which ABC participated.
The greatest challenge to establishing a dynamic volunteer program has been
finding the necessary staff time to coordinate it. For FY2004 ABC will continue
with our current efforts to recruit and coordinate volunteers. We would still
like to recruit a “volunteer” volunteer coordinator.
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