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THE STRATEGIC MARKETING OF SMALL SPORTS CLUBS:

FROM FUNDRAISING TO SOCIAL ENTREPRENEURSHIP

Journal: Journal of Strategic Marketing

Manuscript ID: Draft

Manuscript Type: Original Article

Keywords: Strategic Marketing, Small Sports Clubs, Fundraising, Social Entrepreneurship

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THE STRATEGIC MARKETING OF SMALL SPORTS CLUBS: FROM

FUNDRAISING TO SOCIAL ENTREPRENEURSHIP

ABSTRACT

This paper investigates how Small Sports Clubs (SSCs), the foundations for sporting

excellence and significant contributors to the social capital of society in the face of continued

financial difficulties, can maximise their fundraising activities. A conceptual framework for

investigating the traditional fundraising planning process in the unique context of SSCs is

developed and a qualitative methodology is utilised via 19 in-depth interviews in Northern

Ireland and Germany to test this model. The findings of this study questions the applicability

of generic fundraising planning processes for SSCs and emphasises the previously under-

realised central role that individual personal competencies play and argues for the application

and practice of Social Entrepreneurship in order to ensure the long term survival of SSCs.

This study makes a contribution to the developing literature on sports marketing and to the

important issue of strategic fundraising in the context of SSCs. It highlights the informal, ad-

hoc nature of fundraising in many SSCs and provides some direction for how they could

become more professional in how they fund their activities and plan for the future

development of the clubs.

KEYWORDS: SMEs, Strategic Fundraising Planning, Sports Marketing, Social

Entrepreneurship, Qualitative Research.

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INTRODUCTION

Small Sports Clubs (SSCs) are the basis for excellence in sport and play a crucial role in the

sports development of every country (Coleman 2002, Papadimitriou 2002, Garrett 2004,

Harris et al 2009). They are predominantly voluntary bodies that offer a diverse range of

sporting and social objectives. They contribute to the social capital of a society and the

regeneration, better health, safer, more cohesive and inclusive communities, and lifelong

learning (Reid Howie Associates 2006, Harris et al 2009, Zakus et al 2009). As SSCs

promote values and enrich their communities, they play a crucial role in society.

Although the major sports industry was once considered to be recession-proof, professional

sports organisations have felt the consequences of the economic downturn (Chadwick 2009,

Fullerton and Johnson 2009, Humphreys 2010) as have non-professional sports associations

(Taks 2010). Lack of funding is often attributed to insufficient marketing activities. Sports

organisations need to secure their survival, not only on a short-term but also on a long-term

basis. They need to proactively generate and develop relevant resources such as time, money

and knowledge (often via volunteers), which is collectively understood as fundraising, in

order to tackle their main problems (Freyer 2003, Fabisch 2006, Lindahl 2010).

The aim of this paper is to investigate how SSCs can maximise their fundraising activities.

The relevant literature regarding sport marketing, Small Sports Clubs and SMEs are

discussed initially, followed by consideration of existing fundraising models to help create a

conceptual framework for investigating fundraising in the unique context of SSCs.

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SPORT MARKETING AND THE SMALL SPORTS CLUB (SSC)

Although there is no generally accepted definition of sport marketing, academics agree that

two distinctive streams “marketing of sport” and “marketing through sport” exist (Shilbury et

al 2003, Gallagher et al 2009, Masteralexis et al 2009). This research considers marketing

activities from the sports organisation point of view, and focus on the “marketing of sport”.

Sport marketing literature has predominantly focused upon sponsorship, endorsements,

advertisements, spectator fandom and motivations, and spectator segmentation (Gallagher et

al 2009). The importance of database marketing and the role of customer relationship

management are also evident in the literature (Mullin et al 2007, Ferrand and McCarthy

2009).

A sports organisation can be understood as a “social entity involved in the sport industry; it is

goal directed, with a consciously structured activity system and a relatively identifiable

boundary” (Slack and Parent 2006:5). Stewart (2007) states that sports organisations vary in

terms of their legal structures with unincorporated associations at one end and public

companies at the other end of a profit motive and business structure model. Beech and

Chadwick (2007) distinguish between three major types of sports organisations: the small-to-

medium not-for-profit enterprise, the larger revenue-generating or resource-plentiful not-for-

profit sporting organisation and the private or public owned for-profit sporting organisation.

This paper is set in the context of small-to-medium not-for-profit sports club that have a

turnover of no more than £1 million per annum, a marketing department of one or two people

at most and must therefore be seen as small businesses (Beech and Chadwick 2007).

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SMEs

In the UK, the most widely accepted definition of SMEs is that based on the findings of the

Bolton Committee Report (1971) which defines a small firm as an independent business,

managed by its owner or part-owners and having a small market share. Recent EU definitions

specify that a small company is one with no more than 50 employees, turnover of ≤€10m and

/ or a balance sheet total of ≤€10m; a medium company is one with no more than 250

employees, turnover of ≤€50m and / or a balance sheet total of ≤€43m; it further specifies a

micro company as one with no more than 10 employees, turnover of ≤€2m and / or a balance

sheet of ≤€2m.

Given these criteria, it is evident that SMEs possess unique characteristics and will therefore

be constrained in their marketing, as they are hampered by a lack of resources in terms of

finance, time and marketing knowledge. Overall, they tend to lack specialist knowledge as

they are usually managed by generalists rather than specialists and often have limited ability

to impact on the marketplace. The nature of the marketing they do is not found in traditional

textbook frameworks or conventional practices found in large organisations, instead they tend

to be haphazard, informal, loose, unstructured, spontaneous and reactive (Carson et al 1995,

Gilmore et al 2001).

In the context of this study a small sports club is considered to be a small enterprise and is

defined as a:

“…member of a national league; has an average attendance of ≤ 500; operates as a not-for-

profit organisation and is operated and administered predominately by volunteers”

(Gallagher et al 2009:3).

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FUNDRAISING

Research in the field of fundraising and not-for-profit organisations (Sargeant 1999), has

increased exponentially in recent years (Levy 2004, Carpenter et al 2008) with numerous

studies and research focusing on different sectors including higher education institutions

(Pearson 1999, Sargeant 2009), hospitals (Lindahl and Conley 2002), kindergartens (Hirsch

2008), youth centres (Pisarczyk 2000), politics (Rieken 2002) libraries (Aalto 1997, Jank

1999, Carpenter et al 2008) and charities (Gilmore 2003). Whilst, a great deal of this has

been conducted in the USA (Bothwell 2002, Lindahl and Conley 2002, Jones et al 2003), due

in no small part to the pioneering work of Henry A. Rosso and the Fund Raising School at

the Centre on Philanthropy at Indiana University (Tempel et al 2011), there has also been

considerable research on fundraising carried out in the UK (Staples 2004, Bennett 2007,

Aldrich 2009, Sargeant and Jay 2010). However, fundraising in the context of SSCs has not,

as yet, been studied in any depth.

Whilst it has been described as “the gentle art of teaching people the joy of giving’ (Rosso

1991), there is no single agreed definition of fundraising available in the literature.

Definitions range from “management of communication between a charitable organization

and its donor publics” (Kelly 1998:107), to an all-embracing marketing concept that

concentrates on generating all required resources (Urselmann 2002). Lindahl (2010) goes

further by stating that it is “the creation and ongoing development of relationships between a

not-for-profit organization and its various donors for the purpose of increasing gift revenue to

the organization” (p.4). What is widely recognised is that asking for contributions is just one

component of a comprehensive process concerned with the recruitment and development of

all relevant resources, including financial and human.

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Fundraising is intrinsically linked with philanthropy. Philanthropy is posited on the belief that

individuals possess an innate or compelling want or need to give to worthy causes and is

viewed as voluntary action, association and giving for the public good (Rosso 1991, Tempel

et al 2011). It is the fundamental cornerstone and the ‘glue’ that holds together entire

fundraising efforts with regards to those who give of their time to administer and develop

fundraising programmes and activities, as well as those who make donations.

The reasons for individual giving are both complex and inter-related and researchers suggest

that they are a combination of psychological motives and sociological influences. Donor’s

motives go beyond pure altruism; it can be a mixture of altruism, selfish motivations and

egoism. Reasons for giving such as obtaining a ‘warm feeling’, prestige among peers,

increased self-esteem and recognition plaques are widespread.

STRATEGIC AND TACTICAL PLANNING FOR FUNDRAISING

The fundraising literature advocates the application of a systematic and rigorous plan to help

achieve objectives (Urselmann 2002, Seiler 2001, Fabisch 2006, Sargeant and Jay 2010).

While the frameworks vary slightly in terms of the diagrams and models that are suggested,

they are largely reflective of the generic planning frameworks ubiquitous within strategic

marketing..

The Situational Analysis: Internal and External Environment

A situational analysis is useful for gathering essential information on the environment within

which the fundraising is to be conducted (Sargeant 2009, Sargeant and Jay 2010).

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The internal environment and the acceptance of fundraising activities within the organisation

and the support of the board are clearly important. The key people involved in fundraising

should possess core competencies such as self-competence, social competence, expertise,

methodological competence and occupational competence (Haibach 2002, Ehlers 2006).

Administrative requirements such as the use of databases and easy access to all required

information are important, as are good internal and external communication. Fundraising

organisations also need to fully understand the changing needs of its external environment in

order to be successful (Tempel et al 2011). External influences and individual characteristics

will shape donor decisions to make a contribution (Lindahl and Conley 2002, Smith and

Dunn 1995).

The first step in developing a fundraising plan is for the organisation to specify its core values

in the form of a mission statement (Courtney 1995, Bronzan 1977, Rosso 1991, Kelly 1998,

Seiler 2001). The mission statement provides a philosophical anchor linked with information

gathered from the audit that can be used to develop clear, realisable goals and objectives to

convince trustees, volunteers, staff and contributors that they have a clear plan of what needs

to be done, how and within a reasonable timescale (Rosso 1991, Seiler 2001, Lysakowski

2007, Sargeant 2009, Sargeant and Jay 2010). It is important to consider what is unique

about the organisation’s cause so that it can distinguish its position from that of others

(Courtney 1995, Clarke and Norton 1997, Sargeant and Jay 2010).

Identify Potential Sources of Fundraising

Sources of fundraising include individual donors, companies, trusts and foundations, and

public support (Botting and Norton 2001, Urselmann 2002, Fabisch 2006, Sargeant and Jay

2010). However, some authors claim that public funding is not part of the fundraising

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process, as fundraising activities only aim to achieve additional income but do not represent a

source of regular support (Stier 1994, Haibach 2002). It has been found that government

grants crowd out fundraising because private charities will reduce their fundraising activities

following public support (Andreoni and Payne 2003). It may also impact on resources, for

example Enjolras (2002) claims that an increase in commercial income will cause a decrease

in voluntary work.

Tactical Issues

At the tactical level the finer details of how to achieve objectives are important (Lindahl

2010). This is based upon the development of a targeted tactical mix that is dependent on the

requirements of the specific segment or source funding (Bronzan 1977, Wagner 2004,

Sargeant 2009).

Selecting Fundraising methods

Having decided on which is the most apt segment to target for fundraising efforts a number of

methods can be used to specifically target each. Fundraising methods targeted at individuals

include personal contact, direct mail, telemarketing, advertising (press, TV and radio), events

(sponsored walks or fun runs), payroll giving, inserts and increasingly e-fundraising is being

used to solicit contributions through the Internet. Corporate targeted fundraising methods

include cash, stocks and shares donations, publicity of cause, gifts-in-kind (products and

services), provision of staff time, sponsorship, staff or customer-run events or collecting

money from fines and legacy fundraising. Fundraising methods for trusts and foundations are

targeted specifically at grants from institutional or private funding bodies, the profits of large

corporations, companies or private families who bequest money as part of a will or establish

memorials for dead relatives. A common misconception is that these bequests are sourced

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only from the very wealthy or the elderly, whereas a proactive approach to all sections of the

population from a list of possible prospects with personal contact could be used to develop

future sources of funds (Bronzan 1977, Clarke 1993, Stier 1994, Courtney 1995, Clarke and

Norton 1997, Sargeant 1999; 2009 , Sargeant and Ewing 2001, Fabisch 2006, Sargeant and

Jay 2010).

Involving Volunteers

While the crucial role in the fundraising process of a volunteer’s time, knowledge and effort

is well noted in the literature (Clarke 1993, Seiler 2001, Sargeant and Jay 2010), only Rosso’s

(1991) model explicitly highlights their involvement as a distinct part of the fundraising

cycle.

There are different levels of volunteerism (Breuer and Wicker 2010). Coleman (2002: 220)

differentiates between volunteers who are systematic and ‘have a clearly defined role and

who make a regular commitment to the successful running of the … team’ and volunteers

who are only occasionally engaged in the club’s off-field performance. There are also

different types of recruitment: warm body recruitment, focusing on developing a large

volunteer force without much regard for specific skills; targeted recruitment, focusing on a

smaller number of individuals who have specific skills needed for the organisation’s

operation and concentric circles recruitment, focusing on keeping a steady flow of volunteers

involved in the organisation (McCurley 1994).

Often sports clubs lack direction and planning in relation to the management of volunteers

(Reid Howie Associates 2006) and role ambiguity is a potential problem (Sakires et al 2009).

Reliance on volunteers can often leave SSCs very vulnerable, and they can face a volunteer

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shortage with work increasingly being left to only a few people (Zakus et al 2009). The loss

of key volunteers can leave gaps that are difficult to fill and that are possibly fatal to their

chances of survival (Coleman 2002; Harris et al 2009).

Soliciting the resource and promoting relationship Fundraising

Fundraising is the ‘principle of asking, asking again and asking for more’ (Klein 1997),

which highlights that fundraising is concerned with a long-term commitment and the total

‘lifetime value’ of a donor (Sargeant and Jay 2010). Although there is a common

misconception that fundraising is only about asking for contributions (Hönig and Schulz

2006; Lindahl 2010), many scholars point out the importance of developing donor

relationships. Particularly in the context of not-for-profit organisations whose transactions

may not have an adequate service in return, it is vital to cultivate a relationship with donors

(Kelly 1998, Fabisch 2006, Hönig and Schulz 2006, Mazurkiewicz and Thieme 2008, Waters

2008).

In return for funding, donors deserve a basic treatment that includes the provision of

information (Lindahl 2010) and communication that keeps them feeling involved. Sargeant

and Jay’s (2010) model specifically includes the importance of thanks, recognition, regular

communication and feedback, stewardship reports and invitations to participate when

developing donor relations.

A CONCEPTUAL FUNDRAISING MODEL

The literature suggests many fundraising models that all reflect the application of a well-

conceived, systematic and process-based planning framework approach as previously

outlined. All of these models are ‘cyclical’ in nature. Where they do appear as a series of

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sequential steps or phases they inevitably include a ‘loopback’ phase (Kelly 1998, Sargeant

2009, Sargeant and Jay 2010, Sargeant et al 2010).

However, it could be argued that many of these models are outdated, were constructed for a

different context, such as health care (Smith 2005), or based on a different fundraising

environment, such as the United States (Lindahl 2010), rather than the UK or Europe.

Furthermore, Wagner (2004) states that the fundraising process will be influenced by the

context in which it occurs and it is important to consider how fundraising is understood

within that particular context. The conceptual fundraising model used for this research (Fig.

1) is based on the relevance of fundraising to SSCs. Sargeant and Jay (2010) assume that the

organisation’s size is irrelevant for applying fundraising planning frameworks. However,

SME literature suggests that owner managers of smaller enterprises do carry out marketing

planning, but they do so in a more informal way. The model includes all the formal stages of

planning and this research will investigate to what extent SSCs address all stages.

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Fig. 1: A Conceptual Fundraising Model

(Source: synthesised for this research from Rosso 1991, Courtney 1995, Kelly 1998, Seiler

2001, Fabisch 2006, Lysakowski 2007, Sargeant 2009, Sargeant and Jay 2010)

Situational analysis

of:

Internal environment

External environment

Identify

Potential

Sources

Select

Fundraising

Methods

Tactical

Planning

Strategic

Planning

Soliciting

the

Resource

Promoting

Relationship

Fundraising

Involving

Volunteers

Evaluate,

Control and

Review

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RESEARCH METHODOLOGY

This study adopted a qualitative methodology and focused on investigating how SSCs carry

out fundraising activities. Individual in-depth interviews were chosen for data collection as

they were considered to be more suitable for gaining deep insight to sensitive information

that people might not feel confident to reveal in a group (Denscombe 2007). This was

particularly relevant for this study as there is little cooperation between the sports clubs,

indeed there is often a high level of intense rivalry (Mason 1999).

Nineteen semi-structured interviews, using an interview guide with key topics and questions,

were conducted. The interview guide was based on the conceptual framework and included

questions relating to carrying out a situational analysis looking at the internal and external

environment of the club, approaches used to generate resources, selecting fundraising

methods, the nature and characteristics of volunteers in the club and how they facilitate the

fundraising process, soliciting the resource and promoting relationship fundraising.

This research was carried out in Germany and Ireland. The researchers’ network facilitated

contact with appropriate people; and the contact details of the clubs not known to researchers

were obtained from the German Rugby Union website and the Irish Football Association.

Key informants for the study belonged to sports clubs that fitted the criteria for the study in

terms of being SSCs. Although most of the respondents for the study were identified using

personal contacts all clubs received a letter requesting their participation in the study, for

clarification. To ensure that the letter reached the person in charge, it was followed up with a

phone call. In the cases where the contacted person was not the appropriate one, the letter was

forwarded to the correct club member. Out of 25 clubs contacted, 19 agreed to participate

(Clubs A-T). This was considered sufficient to gather meaningful data.

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Collection of Data

To avoid being overloaded with information, it was important to spread the interviews over a

number of weeks (Easterby-Smith et al 2002). The choice of the venue was left to the

participants and was either the clubhouse, their office or in some cases their homes. Before

starting the interview, it was important to mention the confidentiality of the data and to

confirm agreement to record the interview (Carson et al 2001). Interviews were then carried

out in Germany and Ireland. In Germany interviews were carried out in German to ensure

that the participants could effectively communicate without any language barriers.

Transcripts were translated into English, and back checked with the original interviewer for

meaning and interpretation. Each interview lasted between 25 and 50 minutes and in some

cases a follow-up interview was carried out where some detailed information was missing, in

order to precisely compare and analyse the findings and generate an accurate interpretation.

In addition to electronically recording the interview, notes were taken to ensure getting all the

information and to refer back to a particular statement if necessary.

Research Analysis

All transcripts were coded in relation to the key themes identified in the literature. Codes

were used to “label, separate, compile and organise data” (Charmaz 1983:186) and to capture

the meaning of units of texts. The names of the codes derived from the existing literature

(Saunders et al 2009). For example, the internal and external environment, setting goals,

potential fundraising sources, selecting fundraising methods, use of volunteers, soliciting

resources and relationship fundraising. They were applied to every interview in order to

investigate the applicability of generic fundraising models to each club and to understand

how the club’s unique characteristics affected their approach to fundraising.

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FINDINGS AND ANALYSIS

The findings are discussed in relation to the key stages in the fundraising cycle identified in

the literature and considered earlier.

Strategic Planning

There was very little recognition of formal strategic planning found in this study, with only a

small number of clubs (A, B, C, J, K) saying that they had written down an overall plan

relating to what they wanted to do, in relation to the strengths and objectives for the club. For

example, Club K said that they do try to ‘sit down at the beginning of the year and plan a

programme of events so that we have a steady stream of money coming in and it also means

that we are not asking the same people for money all the time’. However there was very little

appreciation of the value of looking strategically at fundraising planning. Some clubs, such

as B and E said that a plan for their clubs would be inappropriate and unnecessary, as their

approach was haphazard and based on action and intuition. The prevailing opinion was

illustrated by club H’s manager who stated that using a plan is like “cracking a nut with a

sledgehammer”.

Situational Analysis: Internal and External Environment

Overall 16 of these SSCs said that they intuitively considered the internal situation of their

clubs in relation to fundraising planning. This included giving some thought to their club’s

mission and having some administrative, internal and external communicational

requirements. Club L’s manager said that their club had people with ‘ideas, vision and the

will to carry out plans’. Some managers had years of experience in managing clubs and were

accustomed to making plans (Clubs A, D, M) and that helped them develop the relevant

internal prerequisites for fundraising. In addition, findings illustrated that the vision, mission

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and objectives stated are solely in terms of the sport offered and planned performance in term

of how “to develop the youth division” (Club J) for example, but not in terms of business

development and off-field performance.

Only one club (Club C) explicitly stated that they had tried to analyse the external

environment, identify opportunities and threats, and conduct competitor analyses. They said

that “it is important to analyse what the club’s worth is” (Club C). The other clubs said that

they do not have the resources to carry out any analyses. They all spoke of their lack of

money, time, knowledge and motivation in conducting this, with some clubs (F, G, P, O)

doubting whether a comprehensive analysis of the external environment would be of any

benefit to them; arguing that the best way to know what is happening externally is to gather

information from players, fans and friends.

Potential Fundraising Sources

The majority of clubs emphasised the importance of personal contacts in order to acquire

resources and sources of funding (A, B, C, D, E, G, H, I, J, L, M). Club I’s manager used his

personal networks and business contacts to help expand membership and gain sponsorship.

Club J recruits sponsors exclusively by using the personal contacts of players, fans and

friends. A small number of clubs (F and H) did not proactively identify any potential useful

sources of funds, as they only provided financial support for youth development.

While these clubs stated that they used a range of sources, including statutory or public

funding and sponsorship from companies, there was an overwhelming reliance on individual

donors to provide funds. Many of these clubs are aware that they rely on a very limited

number of people for fundraising and some are concerned about this. For example club M’s

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manager said ‘it’s the same twenty people who sponsor the races, who sponsor the event’ and

Club P’s manager said that ‘fundraising is very important to us but it is not easy when you

are going to the same people over and over again to organise it and the same supporters to

contribute to it – it is holding back our development that we have a small support base’. Club

N’s manager said ‘we don’t like asking the same people over and over again to buy tickets for

fundraising events’.

There appeared to be some recognition of the value of philanthropic donations with many

yearning for a rich sponsor to come along and rescue them. Clubs K and M said they could

identify some sponsors for small amounts of money, but they do not have anyone to sponsor

them for larger amounts. What was clearly lacking from the fundraising activities of all clubs

involved was a lack of targeted effort to sourcing funds from trusts and foundations. Club

K’s manager said ‘what we lack is a number of big businessmen who are supporting us

financially’.

Tactical Planning

Whilst numerous fundraising tactics were employed by the clubs, there was also limited and

varied use of formal tactical fundraising plans. Only 5 of the SSCs said that they had

attempted to use a tactical fundraising plan (C, F, G, J and K), and some commented that they

had considered or dabbled in tactical planning but the use was restricted. Club B said they

were currently preparing a tactical plan to try to convince the club’s board to carry out a one-

off project, but they did not consider tactical planning for anything else. Whilst Clubs C, F,

and G said that they had used some tactical planning, this was only for specific events, such

as a jubilee event or tournament, including a schedule and budget but that they did not use

any formal planning for their other fundraising methods.

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Selecting Fundraising Methods

The main income of clubs is generated through membership fees. Individual fundraising

concentrates on community events, sale of goods and services, weekly or monthly lotteries,

prize draws, sponsored walks and bowling nights, all of which are organised informally to

provide a steady stream of money throughout the year for the clubs. Club O’s manager said

that they ‘try to run something at least once a month but don’t plan as such, it’s more of an

ad hoc thing’.

Company or corporate fundraising was found to be solely focused on sponsorship, for

example. Club M identified ‘match day sponsors who sponsor games, balls and programme

advertising’. None of the clubs have used online fundraising, or tried to gather funds from

legacies or fine collections. No club had sought donations in the form of staff time and

knowledge from companies. Furthermore, no consideration, perhaps due to lack of

awareness or confidence in the role of philanthropy, has been given to soliciting funds from

trusts or foundations.

Involving Volunteers

All of the clubs have considered the crucial involvement of volunteers in their activities.

Most clubs (A, B, C, D, F, G, H, I, K, L, M, N) indicated that they do not have problems in

motivating members or friends of the club to help out at events when needed. They listed

activities such as merchandising, social functions like barbeques or breakfasts, and organising

parties that involve the help of volunteers. For example, Clubs N and O specifically

encourage their volunteers to become actively involved in fundraising, and take on specific

roles in seeking funding throughout the year. Club M has volunteers to help with a variety of

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activities such as “paying for getting the ground prepared before a match, working at the

turnstile and painting rooms in the clubhouse”.

However, in terms of developing systematic volunteers, some clubs (A, E, G and K) have

experienced problems and volunteer involvement often varies between occasional and

systematic volunteers. This is not only traced back to the “fear of long-term commitment”

(A), but also to the associated duty of having to attend board meetings with the parent clubs

(G, K). Club K said that particularly for young women, it is challenging to become engaged

in a board that is dominated by older male ex-players: “it is hard to be accepted within the

board as a women”. Furthermore, some clubs have had problems in acquiring sufficient

volunteers to handle the amount of work necessary, even though they had a large committee.

Club E admits that they do not do anything to motivate their members to become involved,

rather it is taken for granted that they will automatically be engaged in volunteer work.

Soliciting the Resource and Promoting Relationship Fundraising

In terms of seeking resources, there is a variety of effort ranging from some clubs who try

very hard (B, K, M, N, P) to those who do not try at all (F and H). For example, Club F

argued that they are “always contacted by individuals and companies that are interested” in

helping and indicate that as they do not lack any money, they do not need to proactively seek

resources. Soliciting resources is often simply seen as asking people they know for

contributions (A, C, D, E, G, I, J) and Club E even goes so far as saying that it is “begging for

money”. Most of the clubs recognise that the best way to maintain funds is through building

their networks with individuals and businesses in the local community and to develop a

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relationship with them over time. Club I’s manager said that ‘networking is the only way

fundraising is carried out… it is a very informal and unplanned approach’.

Most clubs have tried to develop relationships with people or organisations that might fund

their activities. They have tried to maintain some level of relationship by at least showing

recognition and gratitude to helpers, maintaining regular communication, sending invitations

to participate as they recognise the importance of valuing donors and they want to “give

something back”. For example, Club A shows it’s gratitude to funders by sending pictures of

events, thank-you letters and tickets. Club C has a logo linked to its corporate identity, sends

newsletters to its members, and gives T-shirts, free drinks and food at matches to help

develop longer term support from the community. Club I has a logo and corporate identity

and communicates messages regularly using its website. Only one Club (E) argued that it

does not have the time to carry out such activities.

None of the clubs carried out any evaluation, control or review of their fundraising activities

in any formal or even semi-formal way.

Summary of Findings and Managerial Implications

In terms of an application of the conceptual fundraising model developed for this research

(Fig. 1), not all of the stages are fully applied by SSCs. It was evident that SSCs in Germany

and N. Ireland have very similar experiences and approaches to fundraising and managing

their clubs’ activities. The findings showed that internal analysis, volunteer involvement and

relationship fundraising were applied by most of the clubs to some extent. However, the

sources and fundraising are very narrowly focused upon individual donations and methods,

with only limited use of other sources such as company sponsorship.

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Comprehensive internal and external analyses, and the use of either strategic or tactical

planning for all fundraising activities, are not fully considered by SSCs. Although the

literature emphasises a systematic and planned approach to fundraising (Urselmann 2002,

Seiler 2001, Smith 2005, Fabisch 2006, Lindahl 2010, Sargeant and Jay 2010), it may be

either inappropriate or unnecessary for SSCs.

This phenomenon is well recognised in other marketing contexts and some authors argue that

the theory of marketing cannot simply be applied to all circumstances; rather it must be

adapted to the specific context (Sheth et al 1988, Carson et al 2001, Hunt 2002). This is

particularly so in the context of small entities such as SSCs and may vary over time as the

external environment changes. SSCs operate within an environment where donor behaviour

can change over time, can be impacted upon by economic growth and recession and from

country to country (Anheier and Toepler 1997, Haiback 2002, Heinzel 2004).

From the literature discussed earlier it would appear that many fundraising models appear to

be similar to generic marketing planning frameworks, but none of them explicitly

acknowledges the high level of influence of the individual who is central to organising and

carrying out the activities. The findings of this study highlight that the activities of SSCs

range from being very proactive to relatively inactive and that individual fundraiser

competencies, usually those of the SSC manager, play a crucial role.

With regard to fundraiser’s competencies, the findings illustrated that nearly all of the

participants were highly involved and possessed comprehensive, social competencies. They

were demonstrating such soft skills as diplomacy, talent for organisation or comprehensive

communication skills. Club D’s manager said that rather than saying he has competence it is

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more important to “invest a lot of time and to be involved with commitment and dedication”.

However some of the members (B,G, I) lacked expertise and argued that they do not have the

time and motivation to gather appropriate knowledge about fundraising, as it is accompanied

by “a lot of personal effort” (Member G).

SSC managers are in effect small business managers. They behave like SME

owner/managers, and aspects of SME marketing practice could be used by them to help

develop the clubs. Given that the key characteristics of SME marketing is that they have

limited resources in terms of finance, time and marketing knowledge in relation to doing

marketing (Gilmore et al 2001), they tend to do business in a more informal way which is

heavily influence by the owner/manager. For example, SME marketing in practice is an

adaptation of traditional marketing frameworks to suit the specific organisation, it involves

using networks to develop business, tries to be innovative and over time managers develop

the relevant competencies for doing marketing. In the context of SSCs, developing marketing

competence will include not only involving volunteers, but encouraging them to be more

entrepreneurial and helping them to develop networks and competences for developing the

SSC.

Like small businesses, SSCs need managers with some marketing management competencies

that they can build upon and develop. Competence can be developed; it is manifested in

performance in the context of the tasks and roles of the manager. Many managers perceive

themselves to have limited marketing ability, primarily because their prior interests and

background are not in marketing. Many bring ‘technical’ competence regarding the sport

itself but know that they need to develop their competence in running the club as a small

business. Most relevant are knowledge, experience, communication and judgement in SSC

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development and fundraising, and the ability to learn from experience. For example,

competence in taking a more focused approach to the use of resources and planning in

relation to fundraising for both short term and long term objectives.

Another way to develop competence is to seek outside experts to help with business

development and in this way SSCs can diminish the risks of expansion and generate ideas

and possibly resources from new people. Better off people often turn their attention to

philanthropy in later life, but less well documented are the examples of successful business

people who apply what they know works in a business context to the voluntary and social

sector in order to improve conditions at a community level or in a specific context. Social

entrepreneurship and its application and practice in the context of the development of Small

Sports Clubs and their survival within regional and often less than affluent communities can

be very beneficial for all concerned.

The role of a social entrepreneur in providing business knowledge and experience, along with

accessibility to contacts and networks with key people in the business community could be

crucial to the survival of such clubs. The building and maintaining of a reputable image is

vital to the long-term success of any enterprise. However this will require effective

communication, often involving personal, one-to-one communication with key people, and

the ability to provide specific information for the local, immediate market. It will also include

highlighting the benefits of the SSC, the service product it offers and its’ value to users and

the community. Social entrepreneurs with knowledge and experience of business activities

can help SSC’s with their expertise and work towards building relationships with key people

and increasing the professionalism of the SSC. The central role and value of social

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entrepreneurship to a SSC’s fundraising efforts is illustrated in Figure 2. To summarise, a

useful social entrepreneur for SSCs is someone who can:

- use personal selling and lobbying to build relationships with key people and focus on

increasing the professionalism of the SSC

- develop a communication and promotion strategy that will create awareness and provide

information about the activities and benefits of the SSC.

- develop communication that will tell users and stakeholders the benefits of the ‘product and

service offering’ for individuals and community, and establish and monitor expectations of

users. Communication should aim to develop long-term relationships and encourage two-

way communication.

- recognise the importance of perceived value. That is the SSC should offer good value for

money, effort and time for users. For volunteer helpers and stakeholders it should provide an

opportunity to do a worthwhile job in a responsive, non-wasteful manner and should maintain

organisational credibility.

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Fig. 2: A Fundraising Model for SSCs

SOCIAL

ENTREPRENEUR /SHIP

Strategic

Planning

Soliciting

the

Resource

Promoting

Relationship

Fundraising

Involving

Volunteers

Evaluate,

Control and

Review

Situational analysis

of:

Internal environment

External environment

Identify

Potential

Sources

Select

Fundraising

Methods

Tactical

Planning

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CONCLUSION

The generic fundraising models presented in the literature do not consider any specific

contexts such as cultural background, the organisation’s size or the industry it is in, and do

not reflect the intangible help; support and advice that SSCs need to develop their fundraising

activities and expertise. SSCs can maximise their activities by emphasising the club’s unique

characteristics and using a more proactive approach to fundraising and long-term planning.

The SSCs in this study had an over-reliance upon the same short-term individual donors,

limited use of corporate sources and a lack of awareness or confidence in the wider role of

philanthropy and soliciting funds from trusts and foundations. SSC fundraising should

consider a wider variety of potential support. Managers of SSCs need to develop relevant

competencies, either by their own efforts, getting external assistance, or by identifying and

developing another individual (or group of individuals) to ensure the long term survival of

their clubs.

Ideally a SSC needs to identify and involve a relevant social entrepreneur to help the

development of the club and bring vital competence to the organisation. Social entrepreneurs

can offer knowledge, experience and commitment to the development, growth and marketing

of a social enterprise such as a SSC. They are well versed in the benefits of business

communication and relationships, more professional in how they approach commercial

organisations and are likely to have much stronger appeal within a community. With

sustained help, over time SSCs can develop strong company images built on their ability to

provide a valuable offering and one that key stakeholders can be associated with in a positive

way. Research is still at an early stage in social entrepreneurship and there are many

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opportunities for involving social entrepreneurs in SSCs’ future development. Although the

large clubs and organisations get the headlines, it is the small clubs and organisations that are

the lifeblood of sport and a myopic approach to their marketing and management can only be

to the detriment of all sports clubs.

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