Podcast Summary: James Reed: All About Business
Episode 5: The Business Model to Smash a £30 Million Target | BigGive
Release Date: December 2, 2024

Hosted by James Reed CBE, Chairman and CEO of Reed Group, Episode 5 features Alex Day, the Director of Big Give, the UK's largest match funding platform. This episode delves into how Big Give has successfully raised over £300 million for thousands of charities with a lean team of just ten people. The conversation explores the innovative business model, the psychology behind match funding, the advantages of a digital-first approach, and the ambitious goals set for the future.

1. Introduction

James Reed opens the episode by introducing Alex Day, highlighting Big Give’s impressive ability to secure substantial funding for charities despite having a minimal team. Reed emphasizes the relevance of Alex’s insights for small business owners and entrepreneurs seeking scalable growth without extensive resources.

[00:00] James Reed: "I'm often asked by small business owners and entrepreneurs how they can grow when they have such small teams... So how do they do this without adding and hiring more employees than they can afford?"

2. The Big Idea Behind Big Give

Alex Day explains the core concept of Big Give: doubling the impact of donations through match funding. The platform targets three key audiences—champions (match funders like trusts and foundations), charity partners, and the general public.

[01:52] Alex Day: "The big Idea is about doubling the difference that people can make."

When the public donates, match funding champions double their contributions. Since its inception in 2008, Big Give has raised over £300 million by leveraging this model.

3. The Psychology of Match Funding

Reed probes into why match funding is so effective. Alex cites research indicating that donations increase in both frequency and amount when matched, likening it to a "buy one, get one free" strategy used in retail to attract customers.

[03:29] James Reed: "It's like a buy one, get one free offer in the supermarket... That's the same for our match funding idea."

4. The Digital-First Approach

Alex highlights Big Give’s digital foundation, contrasting it with traditional charity campaigns like Comic Relief. Founded in the mid-2000s, Big Give capitalized on the digital boom, allowing for automation and scalability that traditional models lack.

[07:18] James Reed: "You're really digital first. What's the sort of difference? And why do you think that's a better approach?"

[07:45] Alex Day: "Applying that model of matchmaking philanthropists and charities was really the sort of genesis of the Big Give."

The digital approach not only streamlined operations but also facilitated rapid growth, especially accelerated during the COVID-19 pandemic.

5. Scaling with a Small Team

A standout feature of Big Give is its ability to function efficiently with a small team. Alex attributes this to three main factors:

1. Strong Team: Emphasis on hiring highly competent and motivated individuals.
2. Leveraging Networks: Partnerships with the Reed business provide free office space and back-office support, reducing overhead costs.
3. Advanced Technology: Automation and a robust digital platform enhance operational efficiency.

[12:09] James Reed: "How have you managed to keep it so lean?"

[12:21] Alex Day: "We have a really strong team... leveraging the power of our networks... and the technology that we've built."

6. Champion Partner Retention

Maintaining high retention rates among champion partners is crucial. Alex outlines their strategy:

• Clear Value Proposition: Emphasizing the multiplier effect of donations.
• Sustainability Support: Providing charities with training and resources to build long-term fundraising capabilities.
• Community Building: Creating a sense of belonging among champions through shared goals and public recognition.

[17:10] Alex Day: "The multiplier effect... building sustainability... and being part of a community."

Despite challenges in communicating the match funding concept, Big Give succeeds by demonstrating tangible impacts and continuously refining their messaging.

7. Ambitious Goals and Growth

Big Give sets and achieves "Big, Hairy, Audacious Goals" (BHAGs), inspired by business author Jim Collins. Recently, they surpassed their Christmas Challenge target, raising £33 million in a week, up from the previous £20 million target.

[24:17] James Reed: "You've got this target, this huge target of raising a billion for good causes by 2030..."

[25:01] Alex Day: "We smashed it. We got £33 million."

These ambitious targets are supported by foundational investments in technology and infrastructure, enabling scalable growth without proportionately increasing staff numbers.

8. Filco: Philanthropy in Business

A significant portion of the discussion centers on the Filco (Philanthropy Company) model, where a charitable foundation holds part of a company's shares. Alex advocates for more businesses to adopt this structure, citing examples like IKEA and Raspberry Pi.

[36:00] Alex Day: "Having foundation ownership baked into the organizational structure makes you more resilient... and it's a one-off change that has a decades-long enduring impact."

This model fosters trust, aligns corporate values with philanthropic goals, and enhances employee satisfaction and retention.

9. Values and Team Motivation

Big Give operates on core values of being trustworthy, purposeful, and generous. These values attract like-minded individuals dedicated to making a social impact. Alex emphasizes the importance of a motivated team that is eager to learn and grow, finding personal fulfillment in witnessing the tangible difference their work makes.

[35:10] Alex Day: "Our purpose is about doubling the difference... people want to be a part of that."

10. Future Vision

Looking ahead to 2030, Big Give aims to raise £1 billion. Alex discusses potential expansions, such as matched regular giving campaigns to address issues like the cost of living crisis. The platform seeks to remain adaptable, addressing evolving societal needs and continuing to innovate in philanthropy technology.

[41:51] Alex Day: "We hope by 2030 will have the Big Give in a position where we're nearing that big target."

Alex also underscores the enduring necessity of philanthropic efforts, anticipating that needs will persist and evolve, thereby ensuring Big Give's continued relevance and impact.

Notable Quotes with Timestamps

• Alex Day on Match Funding Impact:

  [04:31] Alex Day: "For that trust who's putting in £100k, they've helped leverage £400k of sort of."

• James Reed on Digital Advantage:

  [07:18] James Reed: "What's the sort of difference? And why do you think that's a better approach?"

• Alex Day on Team Efficiency:

  [12:10] Alex Day: "We recruit well and we've got a really fantastic collaborative team."

• Alex Day on Ambition:

  [27:08] Alex Day: "If we're going to go from 20 to 20.1. That's not enough."

• James Reed on Filco Model:

  [38:16] James Reed: "So the CEOs come and go, but the charity foundation is still a shell."

Conclusion

Episode 5 of James Reed: All About Business offers an insightful exploration into Big Give's innovative match funding model and its remarkable success in philanthropy with a lean operational structure. Alex Day's discussion underscores the importance of strategic partnerships, technological integration, and ambitious goal-setting in scaling impactful business models. Additionally, the conversation highlights the potential of integrating philanthropy into business ownership structures, advocating for a more purpose-driven corporate landscape. For entrepreneurs and business leaders, Big Give serves as a compelling example of how aligning business strategies with social impact can lead to sustainable growth and meaningful change.

Listen and Learn More

For those inspired by Big Give’s approach and eager to contribute, visit biggive.org. Support a cause close to your heart and make double the impact through their ongoing campaigns.