scrf studydraft82103actual

Fund Raising

Public Relations

Research

August 24, 2003

Feasibility and Planning Study

2

Table of Contents

Overview..……………...………..………………3

Findings………………… ……...……………….8

Evaluation……………… ……….……………..27

Recommendations...…….………………………38

OVERVIEW

4

Purpose

• Evaluate the fund raising opportunity and potential of the Spinal Cord Research Foundation (SCRF)

• Test a campaign goal of $10,000,000

• Identify potential leadership and prospects for major support

• Analyze the capabilities and interests of SCRF and PVA leaders in conducting a capital campaign

5

Purpose

• Test four (4) areas of need:

Seed funding of innovative investigators

Supporting Centers of Excellence

Promoting the translation of basic scientific discoveries into treatment practices

Quality of life issues for spinal cord patients

• Propose a plan of action to prepare for and conduct a campaign

6

Objectives

• Identify and cultivate leadership and potential donors

• Identify major gift prospects among individuals, foundations, corporations and the community

• Determine the level of support that may be secured from leadership and major gifts

• Analyze the number, amount, and level of gifts necessary to achieve and surpass the campaign goal

• Measure respondents’ views of case statement priorities

7

Objectives

• Identify prospective leaders, chairpersons, and committee volunteers for the campaign

• Determine the timetable, plan, and organizational structure that would be required for the capital campaign

• Evaluate SCRF’s current “readiness” for a campaign and explore methods for advancing this readiness

FINDINGS

9

Findings – Study Participants

Audience Number

PVA and SCRF Leadership/Advisory Boards 8

Individual Donors/Prospects 17

Foundations Donors/Prospects 3

Corporations Donors/Prospects 6

Staff and Administrators 15

While many interviewees are members of more than one category, for purposes of this chart, they were counted in only one primary relationship.

Other Prospects 13

Total Interviews 62

10

SCRF Mission

78%

10%2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Very Important Important SomewhatImportant

11

Key Strengths - PVA

• Impressive and consistent advocacy for individual members in accessing available resources

• Quality sports programs

• Advocacy, positively impacting a broad national constituency – not just PVA members

• Commands great political respect

• Positive working relationship with the Department of Veterans Affairs (VA)

12

Perceived Challenges / Concerns - PVA

• Fiscal challenges faced by PVA in recent years

• Highly reliant on direct mail

• Competition for the fund raising dollar is high

• Corporate giving opportunities not centrally coordinated to maximize their potential

• High cost of dollars raised

• With exception to IG Advisory Committee, PVA lacks strong outside leadership

13

Key Strengths - SCRF

• Supports innovative projects that might not be funded by other sources

• Has a broad view of spinal cord patients’ needs

• Has an effective grant funding selection process

• The cost per dollar raised for SCRF is very low

• A unique niche market of research funded can be defined

14

Perceived Challenges / Concerns - SCRF

• Name recognition/differentiation of SCRF from PVA

• Need to differentiate SCRF-sponsored research from that financially supported by other organizations (NIH & VA)

• Significant competition for the philanthropic dollar

• Many PVA members seem more focused on sports activities than on research

• Is “research” a priority and is the PVA willing to invest (staff & budget) to raise significant resources

15

Perceived Importance of SCRF Areas

Highest High Medium LowDon’t

Know

Supporting innovative investigators (seed grants)

71% 10% - 11% 8%

Supporting

Centers of Excellence

40% 32% 18% 12%

Research into quality of life issues for SCI patients

38% 44% 13% - 5%

Increasing the number and/or size of grants awarded

77% 13% 10% - -

16

Case Elements

Most common themes:

Research is making real progress

Finding a cure/getting veterans out of their chairs

Research making a difference in people’s lives today

Patriotism

17

Case Elements

Areas of research interest:

Finding a cure

Quality of life issues

Outcomes research

Psychosocial issues

Translational research

18

Is a Goal of $10 Million Achievable?

Yes45%

No20%

Maybe15%

Don't Know20%

19

Significant Challenges Offered

• Major gift prospects - availability/cultivated

• Economy - most often cited

• Leadership - number/cultivated

• Internal communications - information sharing

• Name recognition of SCRF

20

Prospect Potential Indicated by Others

Suggested

Giving Level

Number

of Prospects

Number of Prospects Cited Two Times or More

$1,000,000 to $2,499,999

0 0

$500,000 to $999,999

1 0

$250,000 to $499,999

5 2

$100,000 to $249,999

1 1

$50,000 to $99,999 4 2

$25,000 to $49,999 15 6

$5,000 to $24,999 13 8

21

Campaign Leadership

Leadership Number of Candidates

Number of Candidates Cited

Two Times or More

Honorary Chair(s) 9 3

General Chair 5 4

Leadership / Major Gift Chair 3 1

Corporate / Foundation Chair 3 1

Board Chair 2 2

22

Willing to Serve as Leaders

38%

14%

48%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Yes Maybe No

23

Campaign Involvement

Yes Maybe No

A Donor to the Campaign 78% 15% 7%

A Member of a Solicitation Team

45% 30% 25%

Contacting Prospective Donors

48% 14% 38%

24

SCRF’s Rank Among Philanthropic Priorities

26%35%

24%15%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Highest High Medium Low

25

Giving to a Potential Campaign

78%

15%7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Yes Maybe No

26

Financial Indications of RespondentsFinancial Indication Range Number of Individuals

Potential 7-Figure Gifts 0

Potential 6-Figure Gifts 2

Potential 5-Figure Gifts 13

Gifts under $10,000 21

No Gift Anticipated 6

Range of Respondents’ Potential Gifts

Low High

$832,000 $1,112,000

* 14 prospects did not offer any specific gift intention data when asked.

EVALUATION

28

Campaign Requirements

• A compelling case statement that distinguishes SCRF from PVA and demonstrates the need to support both entities

• A positive perception of SCRF by its constituencies

• The identification and participation of strong and influential leadership

• A significant number of cultivated prospects

• A well coordinated and properly financed fund raising plan

29

Key Points - Case Statement

• 82% placed‘highest’ or ‘high’ priority on the research needs identified in the background statement

• Many participants had limited knowledge about SCRF or were unable to distinguish it from PVA

• Respondents generally agreed that the case priorities reflect the current needs of SCRF

• Some respondents urged that a portion of funds raised be set aside to endow future research and to ensure SCRF’s ability to make multi-year grants

30

Key Points - Case Statement

• 60% believe that a campaign for $10,000,000, primarily for immediate research needs, is achievable or might be achievable

• 93% would consider or might consider a gift to a campaign for SCRF for the purposes outlined in the Background Statement

• 61% rank SCRF the highest or a high philanthropic priority

31

Leadership Analysis

• Leaders in the SCRF Campaign must be:

- Willing and able to make a significant gift to the campaign (minimum 5-figures payable over three to five years)

- Recognizable and influential

- Committed to spinal cord research and care

While there is an indication of the availability ofpotential leadership, much of it needs cultivation

32

Leadership Considerations

49%

62%

75%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Would / Might Serve asLeaders

Would / Might ContactProspective Donors

Would / Might HelpSolicit

33

• Historically, PVA has been the largest contributor to SCRF

• Reflecting the decline in donations experienced by PVA, contributions to SCRF have also declined substantially in recent years

• The decline in contributions from PVA has moved SCRF to advance fund raising efforts in other areas – particularly Individual Giving

Donor Analysis

34

SCRF Funding History

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

1999 2000 2001 2002 2003

PVA PVA Chapters Other Donors

35

SCRF Income

• While individual contributions to SCRF have increased substantially in recent years, this increase in income does not make up for the decline in contributions from PVA

36

Prospective Donors

To advance the effort to raise external funds, SCRF needs to undertake a number of actions:

• Identify a pool of qualified potential donors through prospect research

• Include members of PVA in the SCRF prospect pool (Indications are that some elements of this segment are likely to be willing and able major gift participants and leaders)

• Pursue and cultivate additional corporate and foundation prospects to help maximize fund raising potential during the campaign

37

Prospective Donors

• Identify influential leaders who indicate a willingness to support a campaign (most giving sights need to be elevated)

• The current economy and split from Eastern Paralyzed Veterans Association (EPVA) were both frequently mentioned as possible obstacles to the success of a $10,000,000 campaign, especially their impact on leadership level giving

RECOMMENDATIONS

39

Recommendations

STRUCTURE

• Campaign conducted in two Phases

• Phase I - Goal of $5,000,000 would concentrate on major gifts of five figures and above only

• Phase II - Would continue the major gifts effort and be a more broad based effort to include all donors and prospects at all levels

• Utilize the Individual Giving Advisory Board and possibly Bob Dole in an honorary capacity

40

Recommendations

GOAL

• We believe that a Phase I campaign goal of $5,000,000 should be established

• This figure would be “comprehensive” and include all fund raising being conducted by SCRF over the campaign period

• The campaign would be three years in duration with a five-year payment schedule

• Phase II goal would be based on success of first phase and the prospect potential going forward

41

Recommendations

GENERAL

• Establish a Campaign Committee to provide vision for the proposed campaign and cultivate future leaders and donors

• Joe Fox, Del McNeal, John Bollinger and respected clinicians need to be involved in all phases of the campaign including solicitations

• Campaign will be driven by PVA Individual Giving staff, which has significant major, planned and capital gift experience

42

Recommendations

• Campaign preparation should include identifying, confirming, cultivating and soliciting key potential major gift prospects

• Establish an internal volunteer task force to review and refine priority areas outlined in the study

• Corporate fund raising, PVA wide, should be consolidated into a single comprehensive effort

• Utilize the PVA database to secure gifts for SCRF over and above current giving

43

Recommendations

• SCRF to work with PVA to establish and structure a direct mail program

• Utilize comprehensive individual, corporate and foundation prospect research and tracking systems

• Conduct electronic screening of SCRF and PVA member records to help maximize the prospect pool within key constituent communities

• Establish formal donor and leader cultivation plans

• Increase staffing and budget in the Individual Giving department

44

Recommendations

• Recognize restricted giving as an integral source of revenue

• Establish named gift opportunities

• Retain Counsel to assist staff in conducting a capital campaign

45

Phase I Campaign Committee

• Cultivate and recruit leadership to form a Campaign Committee which will:

– guide the campaign and help develop fund raising strategy

– identify leadership

– assist in developing prospect lists

46

Prospect Constituencies• Board Members – SCRF and PVA Boards of Directors, Scientific

Advisory Board

• PVA Members

• Current and Past Donors

• Potential New Donors

• Foundations, Business and Corporations

• Other Veterans Service Organizations

• Friends

• Employees

47

Prospect Research

• Identify prospects from current SCRF lists of friends and donors

• Conduct an electronic screening of the entire PVA member database

• Conduct an electronic screening of select segments of the larger PVA donor base

• Develop comprehensive background and financial profiles of leadership prospects

48

Major Gifts• Establish a basis for initial major gift level visits

• Involve a small group of donors and other top prospects as part of a Campaign Committee

• Create individually tailored presentations to be used as part of major gift solicitation visits

• Key volunteer and administration leadership is essential to success

• Like the current Individual Giving department, the campaign will be staff driven

49

Public Relations Broaden awareness of SCRF by coordinating with

PVA’s Communications department:

• brochure or kit of case elements with emphasis on initiative/campaign

– campaign video (similar to PVA’s Year in Review)

– major gift prospectus

– development newsletters

– commemorative opportunity brochure

– question and answer pamphlets

– intensifying public service ads, media contacts, speaker events, other marketing venues

50

Timetable - Phase IPhase I Activity Financial Goal

PHASE I

(12-18 month Period)

Campaign Organization & Leadership Development

AND

Initial Major Gift Activities

• Establish Case Task Force

• Draft Case Statement

• Establish prospect research and tracking system and overall plan for increasing and utilizing donor base

• Recruit Campaign Committee

• Develop promotion & cultivation plan

• Establish immediate Major Gift prospect list (Top 25, 10, 5 prospects)

• Establish gift giving and crediting policies

• Develop ‘Named Gift’ Opportunities

• Design Commemorative Gift Recognition program

• Establish SCRF public relations & communications strategy

$

$5,000,000+

51

Timetable - Phase I

Phase I Activity Financial Goal

PHASE I

(12-18 month Period)

Campaign Organization & Leadership Development

AND

Initial Leadership Phase Activities

• Prepare personalized gift prospectuses and proposals, letters of intent and gift documentation

• Recruit chair(s) for Board solicitation visits and Board Committee, as well as Chair(s) of Leadership Gifts phase

• Orientation and Training of Board(s) Campaign volunteers and staff

• Commence visits to all board members

• Begin visits of Major Gift prospects

• Establish strategy for each constituency

• Prepare Foundation and Corporate proposals and/or visit strategies

$5,000,000+

52

Timetable - Phase II

TBD

• Continue Major Gifts effort

• Refine strategies for each case priority

• Recruit Committee Chairs

• Continue Prospect Research: prospect expansion, new individual prospects and corporate affiliations / partnerships

• Continue orientation and training meetings

• Continue cultivation visits and stewardship of donors

• Continue corporations and foundations proposals and/or visits

PHASE II

(18-24 month Period)

Campaign Activity

Major Gifts, Special Gifts, Constituency Campaigns,

Direct Mail

AND

Completion, Celebration and Stewardship

Financial GoalActivityPhase II

53

Timetable - Phase II

TBD

• Announce campaign publicly (amount to be determined)

• Conduct visits for top donors & prospects

• Continue cultivation events, dinners, etc.

• Recruit and train committee members

• Conduct Special Gift Division receptions

• Begin Special Gift visits ($5,000+)

• Launch General Gift Division (Under $5,000)

• Complete Special Gift Division visits

• Donor Recognition Activities

• Wrap-up all Leadership, Major Gift, Corporate and Foundation solicitations

• Campaign Close-out

• Celebration Event(s)

PHASE II

(18-24 month Period)

Campaign Activity

Major Gifts, Special Gifts, General Gifts, Constituency

Campaigns, Direct Mail

AND

Completion, Celebration and Stewardship

Financial GoalActivityPhase II

54

$5,000,000 Gift Table

Size of Gift Number

of Gifts Needed

Number of Prospects Desired

Providing Cumulative Total

A $1,000,000+ 1 3 $1,000,000 $1,000,000

B $500,000+ 2 6 $1,000,000 $2,000,000

C $250,000,+ 3 9 $750,000 $2,750,000

D $100,000 6 18 $600,000 $3,350,000

E $50,000 12 36 $600,000 $3,950,000

F $25,000 20 80 $500,000 $4,450,000

G $10,000 50 200 $500,000 $4,950,000

H Below $10,000 Many Many $50,000 $5,000,000

Totals 94 352+ $5,000,000+ $5,000,000

55

$10,000,000 Gift Table

Size of Gift Number

of Gifts Needed

Number of Prospects Desired

Providing Cumulative Total

A $1,000,000+ 2 6 $2,000,000 $2,000,000

B $500,000+ 4 9 $2,000,000 $4,000,000

C $250,000,+ 6 18 $1,500,000 $5,500,000

D $100,000 12 36 $1,200,000 $6,200,000

E $50,000 24 80 $1,200,000 $7,400,000

F $25,000 40 200 $1,000,000 $8,400,000

G $10,000 100 400 $1,000,000 $9,400,000

H Below $10,000 Many Many $100,000 $10,000,000

Totals 188 352+ $10,000,000+ $10,000,000

56

Ten Core Recommendations

1. Conduct a campaign with a Phase I goal of $5,000,000

2. Increase staff and budget of the Individual Giving department

3. Engage PVA’s Communications department to increase the awareness of SCRF

4. Coordinate Corporate Gift Requests to maximize potential

5. Establish an internal task force to strengthen the case for support

57

Ten Core Recommendations

6. Outsource electronic screening of PVA and SCRF Members and other databases, as required

7. Establish a donor cultivation & recognition plan

8. Recruit a small but influential Campaign Committee to help lead the campaign

9. Obtain full Board support and participation prior to launching a campaign

10. Budget campaign expenses at an appropriate level (10% - 12%)

QUESTIONS