development for conservation · • mail or phone solicitation • quick response • small(er)...

Development for Conservation

David Allen | [email protected] | 608-239-5006

Strategic Fundraising Planning

Presented to

Pennsylvania Land Conservation Conference - 2017

6 May 2017

mailto:[email protected]

1

Strategic Fundraising Planning

5 May 2017

Outline for the Session

• Introductions • A Little Review• Why People Give• Strategies for:

– More Members– More members giving $1,000– More major giving

• Cultivation Plans• Conclusions

Review

• Revenue is all the money on the PLUS side of the ledger

• Fundraising includes everything an organization does to raise money charitably

Review

• “Development,” “Fund Development,” and “Advancement” imply deliberate and strategic cultivation and solicitation of individual donor prospects

• I use these terms interchangeably

Review

• “Developing” resources for the organization is a core responsibility of board members

• 90 percent of development involves building relationships with donors

Review

• People give money because they WANT to, not because

– They’re rich

– We’re desperate

– We think they should

– We need money

– We ask them

– We gave money to their cause

2

Common FR Mythology

• Money comes from corporations and foundations

• We can’t raise money because we don’t

know any rich people

• $1,000 is a lot of money

• My time should count

Review

• To be successful, we have to change the paradigms that aren’t working for us

Definitions:

• Annual expectation (renewal)

• General organizational appeal (operations)

• Mail or phone solicitation

• Quick response

• Small(er) gift size

• Measure of success = YES

Annual Gifts

Definitions:

• Specific need

• Unique appeal

• Personal ask

• Multiple visits

• Large(r) gift size

• Measure of success = ADVANCE

Major Gifts

Factors Defining Major Gifts

• How do your donors perceive the organization?

– What does your Board give?

– What is your largest gift?

– Do your donors know?

• How do your donors perceive themselves as donors?

• How much do you need? (As a generalization, donors are unlikely to give more than 40% of the need under the best of circumstances.)

Ultimate (Planned) Gifts

• Long‐term relationship with organization

• Organization is one of donor’s only charities

• Desire to leave a legacy

• Perhaps self‐conscious about ability to give during lifetime

3

Sustainability

Robust, resilient, sustainable organizations work with their donors on annual gift, major gift, and planned gift programs, all three, at the same time with systematic board member engagement and adequate staff support.

Where are we vulnerable?

• Over‐dependence on– Single donor

– Corporate support

– Foundation support

– Government support

– Single event

– Fee‐for Service revenue

• Board not involved in donor cultivation; Directors don’t know the donors

Outline for Planning

1. What is my GOAL?

2. What are my options?

3. What resources will I need?

4. Pick some of the more promising options.

5. Go for it.

6. Measure.

7. Adapt.

Start Here

How much do we need to raise?

Strategic Planning

Mission

Strategy(Direction, Activities)

Plans(Measurable inTime & Scope)

Budget

Fundraising Goal

Strategy(Direction, Activities)

Plans(Measurable inTime & Donors)

BudgetTo

tal e

xpen

ses

less

$$

from

oth

er r

even

ue s

ourc

es.

Step 2How much we need to raise

Less

How much we expect to come from:Government, Endowment, Merchandise

Equals

How much we need to raise from Fundraising

4

Step 3

Separate

Money we need to raise every year

from

Money we need to raise only once

Raise it once

• Capital– Land

–Buildings

–Equipment

–Endowment

Raise it every year

• Operations–People

–Utilities

– Supplies

–Travel

Think Pyramidal

Step 4

For One‐Time Money

5 Prospects = 1 Gift = 25‐40%

9 Prospects = 3 Gifts = 25‐40%

24 Prospects = 8 Gifts = 25‐40%

Step 5

For Every Year Money

Plan and Measure Activities for Audiences

(Not the other way around)

Charitable Giving Segments

• Foundations

• Businesses

• Individuals

5


• Foundations

• Businesses

• Individuals

– Board Members

– Major Gift Prospects

– Annual Giving Leaders

– Donors

– Lapsed Donors

– Non‐Donors


• Foundations

• Businesses

• Individuals

– Board Members

– Major Gift Prospects

• Doug

• Mary

• Carol

• Tom

– Annual Giving Leaders

Fundraising Activities

• Grant‐writing (Gov’t and Fdn)

• Events

• Annual Gift (Membership) Campaigns

• Major Gift Development

• Planned Giving



• Events

– Sponsorships

– Tickets

– Auctions, Raffles, Food



• Planned Giving



• Events


– Recruitment

– Renewal

– Donor Clubs


• Planned Giving

More Members

6

How Many More?

• $300,000

• = 1,000 members giving $300

• How will you get and sustain 1,000 members?

How Many More?

• Assume 75% Renewal Rate

• Recruitment Target is 250 per year, every year

• How will you recruit 250 new members every year?

More Members = Marketing• Direct Mail• Direct Contact (in person, telephone)• Email• Social Media• On‐Line – People find us• Table/Booth• Member‐get‐a member campaigns• Gift Memberships• Door‐to‐door• Other?

Essential Case for Direct Mail

1. Land trusts need unrestricted money

2. Individual donors who regularly give unrestricted money provide the most reliable source of unrestricted funding not named “Endowment”

Essential Case for Direct Mail

3. The most effective and efficient method of soliciting annually renewable, unrestricted gifts is through the mail –even if the gift is ultimately given online

4. The most effective and efficient method of attracting new annually renewable donors is also through the mail –targeted direct mail solicitation

The Importance of the 2nd GiftFirst Year Renewals (Second Gifts)

• Direct Mail = 40‐45%• They find you & mail a check = 40‐45%• They find you on‐line = 35‐40%• Project Appeals = 25‐30 %• Social Media/Email = 15‐20%• Special Events = 15‐20%• Gift Memberships = 5‐10%• Tabling = 5‐10%

7

Planning Tip

Track your first renewals!

• How many donors made first gifts in the last calendar year?

• How many of those donors made a second gift this year?

• To sustain a 1,000‐donor membership, you need 100 new “first renewals” every year

You Will Need…..• At least one person who gets really good at recruitment and renewal systems

– Premise: Writing effective fundraising letters, testing direct mail packages, and working with list brokers and mailhouses are skills that can be learned and developed

• A recruitment budget that you can sustain over time

• Patience

More Members Giving (at least) $1,000

More $1,000 – Giving Clubs

• Marketable Name

• Printed Materials

• Signature Event

• Solicitation Strategy

• Starter Set of Donors

Names

• Voyageurs

• Bluffland Guardians

• Compass Club

• Land Legacy Society

• Blue‐Green Society

• Northern White Cedar Society

• Black Rock Society

• Lone Star Circle

Names

• Katherine Ordway Associates

• Warren Knowles Society

• Margaret Power‐Biggs Society

• Nancy Seiberling Circle

8

Collateral

• Stationary

• Descriptive Brochure

• Pin

• Decal or Cling

Special Event/Giveaway

• Make it plain, but unique

• Make it corny

• Make it FUN!

9

Nature

Preserves

I got fleeced… By my local Land Trust!

Solicitation Strategy

• “Special Appeal” Mail

• Handwritten letters

• Personal visits

• Director involvement

Starter Set of Donors

• Induct everyone already giving at the threshold level

• Look at donors who may have given $1,000 in the past

• Look at current donors who are giving $250 or more



• Events



– Screening

– Pipeline Cultivation

• Planned Giving

The Donor PipelineA. Donors who are ready to be asked

B. Donors with a known interest in a specific program, project, or outcome

C. Donors who are warming to the organization and mission

D. Donors we are connected to but really don’t know yet

E. Donors we are not connected to

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Connections

• People who have a known interest in what we’re doing,

AND

• People we have access to

Cultivation Activities

• Sign renewal and thank you letters

• Phone calls (esp to say Thank You)

• Introductions to other leaders

• Invitations to events

• Share news and stories; share the Strategic Plan

• Experiences on the land

• Overflight






Giving Segments (Individuals)

• Board Members

• Major Gift Prospects

• Annual Giving Leaders

• Members Giving $100‐249

• Members Giving less than $100

• Lapsed Members & Non Members

Getting Started

• Screen the entire donor list

• Select a set of prospects to get to know

• Call each one – say Thank You!

• Cultivate (get to know) each one; listen to them and discover their interests

• Take/keep good notes

11

Basic Principles

• Facetime is KING

• Redundancy

• Three-year cultivation plans

• Relationship is recorded in the files

• Annual Gift Renewal Asking = Major Gift Cultivation

• The donor is the HERO

Starter Goals

• Personally ask (or participate in asking) 10‐20 prospects for at least $10,000 for a relevant project within the next 3 years.

• Contact (interact with) each prospect at least four times each year before asking for money. A fifth contact can be a renewal.

• 100% Renewal Rate

Tools You’ll Need

• Goals from Strategic Plan, Rolling 3‐year Budget

• Screening templates and data system

• Job Description for board service

• Institutionalized Practice

• Director champions

• Strong internal communications

Internal Communication

• Board members need cultivation, too!

• Information about their specific donors

• “News” to pass along

• Create space at meetings to share stories

Planning Matrix

Annual Renewal

Giving Club Ask

Appeal Letters EventsProgram Grants

TOTALS

Spring Fall Golf Banquet Field Trips

Individuals

Board Major Gift Prospects Annual Giving Leaders

Donors

Lapsed Donors

Non‐Donors

Foundations

Businesses

TOTALS

Planning Matrix

Annual Renewal

Giving Club Ask

Appeal Letters EventsProgram Grants

TOTALS

Spring Fall Golf Banquet Field Trips

Individuals

Board 18,000 5,000 2,500 25,500

Major Gift Prospects

500 12,000 22,000 50,000 84,500

Annual Giving Leaders

70,000 10,000 8,000 2,200 90,200

Donors 33,000 8,500 12,500 6,100 1,500 61,600

Lapsed Donors 4,000 800 800 250 150 6,000

Non‐Donors 400 1,300 600 2,300

Foundations 75,000 75,000

Businesses 20,000 15,000 5,000 40,000

TOTALS 37,500 100,000 19,700 36,600 33,000 26,050 2,250 130,000 385,100

Plan

ning M

atrixAnnual

Ren

ewal

Givin

g Club

Ask

Program

Gran

tsTO

TALS

Sprin

gFall

Golf

Banquet

Field Trip

s

Individ

uals

Board

Majo

r Gift P

rospects

Annual G

iving Lead

ers

Donors

Lapsed

Donors

Non‐Donors

Foundatio

ns

Busin

esses

TOTA

LS

Appeal Letters

Events

Plan

ning M

atrix

Individ

uals

Board

Majo

r Gift P

rospects

Annual G

iving Lead

ers

Donors

Lapsed

Donors

Non‐Donors

Foundatio

ns

Busin

esses

TOTA

LS

DAVID ALLEN

I am a non-profit organizational development consultant. I work with organization boards to help their members learn how to be better leaders and advocates.

My background includes 30 years working in membership fundraising, major donor development, communications, and marketing. I worked for about half that time for Nature Conservancy (TNC) chapters in Oregon, Texas, and Wisconsin. In addition to my duties for the individual chapters, I served TNC as an internal fundraising consultant and major donor development trainer.

In 2000, served as the vice-president of operations for the Wisconsin-based, international conservation organization Sand County Foundation, a position I held through mid-2009.

Gathering Waters Conservancy, a land trust service agency based in Wisconsin, called me in 2002 to ask whether I would be interested in teaching a seminar for Wisconsin land trusts on major donor development. From 2002, then, through 2009, I consulted on a nights and weekends basis with just a few clients each year.

In March of 2009, I launched my consulting business full-time using the name Development for Conservation.

Also in 2009, I partnered with Peter McKeever and Nancy Moore to form Conservation Consulting Group. Together we help land trusts prepare for accreditation by providing assessment, planning, and leadership coaching services.

I consider myself a strategic thinker, problem solver, facilitator, educator, and program developer who brings a particular passion for conservation and the environment.

Practice Competencies Fundraising Organizational Development • Development Audit • Strategy Development • Staff/Board Training and Development • Practice & Process Assessment • Major Gift Coaching • Problem Solving Facilitation • Capital Campaigns • Marketing

David Allen

Development for Conservation

[email protected]

608-239-5006

608 West Dean Avenue Monona, WI 53716

www.DevelopmentForConservation.com

mailto:[email protected]

http://www.developmentforconservation.com/

development for conservation · • mail or phone solicitation • quick response • small(er)...

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