developing a strategic fund development plan (march 17, 2015)
TRANSCRIPT
UNITED WAY LEARNING SERIES
Developing a Strategic
Fund Development Plan
Agenda
Fundamentals of a Strategic Fund Development Plan
Ten Funding Models
Creating a Plan That Works for Your Nonprofit
Schedule
9:00 – 9:20 REGISTRATION & NETWORKING
9:20 – 10:00 PRESENTATION & DISCUSSION
10:00 – 10:15 BREAK
10:15 – 10:55 SMALL GROUP WORK
10:55 – 11:30 REPORT BACK
11:30 Q&A & WRAP UP
Who is here today?
• Human Service
• Arts and culture
• Education
• Health
• International
• Environmental
Nonprofit Type:
• Up to $1MM
• $1 - $5MM
• $5 - $10MM
• $10MM +
Size:
• Government
• Foundations
• Corporate
• Individual: mem/annual
• Individual: major donor
• Workplace giving
• Fees for services
Major Funding Source
• DOD
• ED
• Other Roles
What challenges do we face…
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…in creating a fund
development plan?
What makes a plan “strategic”?
STRATEGY is about making CHOICES:
1. broad approach
2. leverage your distinctive assets
3. achieve your goal.
What do donors fund?
Organization
IMPACT
MISSION
BRAND
VISION
PEOPLE
It’s all about the people
YOUR DONORS
• Passion
• Motivation
• Connection to your people
• Decision-makers
• Affluence
• Benefits they receive
YOUR LEADERS AND TEAM
• Passion
• Ability to inspire
• Relationship-building
• Time spent on fundraising
• Making the case
• Stories of impact
Where are your people giving?
Individuals Top Bridge Base Foundations Corporations Government Workplace
LEADERSHIP GIFTS $5000 +
MAJOR GIFTS $1000+
BASE $100 +
Your funding strategy
Where is the opportunity
Currently the strongest?
Not worth pursuing
Tactics follow strategy
Funding Strategy
Financial Targets
Programs
Key Tactics
Action Plan
Ten Funding Models
Stanford Social Innovation Review
1-Heartfelt Connector
2-Beneficiary Builder
3-Member Motivator
4-Big Bettor
Peter Kim, Gail Perreault & William Foster,
Stanford Social Innovation Review, 2009
“Ten Nonprofit Funding Models”
8-Resource Recycler
9-Market Maker
10-Local Nationalizer
5-Public Provider
6-Policy Innovator
7-Beneficiary Broker
Core elements of funding models
14
• Individuals, foundations, government, corporations, mixed
Source
• Multitude of individuals, few individuals, policy-makers, administrators
Decision-maker
• Self-interest, altruism, collective interest
Motivation
Primary Source - Individuals
MODEL Heartfelt Connector Beneficiary Builder Member Motivator Big Bettor
Character-istics
Broad mission appeal Provides individual benefits & connection
Serve a group, creates collective community
Mission may be fulfilled within timeframe
Examples Medical research, environment, international
Universities, hospitals Religious congregations, arts, environment
Medical research, environment
Save the Children Harvard University NPR March of Dimes (polio)
Source Individual Individual Individual Individual or Foundation
Decision-Maker
Multitude of individuals
Multitude of individuals
Multitude of individuals
Few individuals
Motivation Altruism Self-interest then altruism
Collective Interest Altruism
Programs/ Tactics
Special events… Direct mail… Corporate sponsorships
Fees… Major gifts Membership… Fees… Special events… Major gifts… Direct mail
Major gifts
Primary Source - Government
MODEL Public Provider Policy Innovator Benficiary Broker
Character-istics
Provides services seen as govt responsibilities
Offers significant new approach, often result of crisis
Beneficiaries decide how to spend the money
Examples Human services, education, international
Human services, education, international
Health, housing, employment
Interfaith Works (homeless shelters)
Latin American Youth Center (LAYC Academy)
Ardmore Enterprises (disabilities)
Source Government (via RFP) Government (via champion}
Government (via reimbusement)
Decision-Maker
Administrators Policymakers Multitude of individuals
Motivation Collective interest Collective interest Self-interest
Programs/ Tactics
Government Contracts Earmark or govt. pilot project
Gov't. reimbursement
Primary Source – Corp. + Mixed
MODEL Resource Recycler Market Maker Local Nationalizer
Character-istics
Nonprofit uses surplus or low-cost goods
Funder with self-interest and abililty to pay
Top priority local issue, common to many localities
Examples Food, international Health, conservation Education, youth development
Capital Area Food Bank The Trust for Public Land Big Brothers Big Sisters of America
Source Corporate Mixed Mixed
Decision-Maker
Few individuals Mass of individuals / few individuals
Few individuals
Motivation Self-interest Altruism/self-interest Altruism
Programs/ Tactics
In-kind giving Fees… Major gifts Major gifts… Special events
Creating a Plan
Strategic Development Plan
Mission, Vision, Impact,
Strategic Plan
Core Funding Strategy
Realistic & Ambitious FINANCIAL
GOAL
Core Messages
Donor Segmen-
tation and Stewardship
Key Tactics
Financial Targets per
Donor Type & Tactics
Roles of ED, DOD,
Board, Volunteers
Activity Calendar, Budget, Systems
STRATEGIC DEVELOPMENT PLAN
Strategic Development Plan Outline
DEVELOPMENT PLAN FOR DEV COM & BOARD
Goal - $ For contributed revenue
Breakdown By source and/or program
Core strategies Major approaches to achieving goal
Annual Objectives Measurable objectives per source, program, strategy etc.
Activity calendar By month at a minimum
Expense Budget Major categories, at a minimum
ACTION PLAN INTERNAL
Tactics, project timelines, staffing, systems, itemized budgets etc.
Detailed implementation plans that guide development operations
Let’s get going!
1 Consider how CP® Fund Development - Strategy Planning Tool relates to your nonprofit
2 Get input from others at table
3 Divide into new teams based on funding model
4 As a team, select one organization as a “case study” for planning as time permits.
5 Report back (5 minutes each group)
Table Team Work
Thank you to our Sponsor and Partners!
And special thanks to all of you!
Mary Robinson Julie Crudele
Sponsored By