fundraising for small shops
DESCRIPTION
How do you create a successful fundraising program with a small development staff? It's not impossible, but requires resourcefulness, creativity, and, of course, hard work! In this session, we'll address "mission critical" tasks for your development program, how to recruit volunteers to extend your resources, and how to prioritize your many responsibilities to be efficient and effective.TRANSCRIPT
Fundraising for Small ShopsFundraising for Small Shops
Alice L. Ferris, CFREJames S. Anderson
Things we have in common Things we have in common with larger shopswith larger shops
Things we have in common with Things we have in common with larger shopslarger shops
Philanthropic intent Primary elements of the development cycle
Prospecting and research Cultivation Solicitation Recognition and acknowledgment
Accountability To donor To supervisor To board of directors To communities you serve
NEED Show me the money!
What’s Different?What’s Different?
DifferencesDifferences
Resources People Donors Budget
Reliance on philanthropic giving “Insulation” from the rest of the operation Generalist v. specialist
What is Mission Critical?What is Mission Critical?
Activities that you must do in development to: Generate revenue Insure sustainability of the fundraising
program Fulfill reporting and legal requirements
What is “Might do”?What is “Might do”?
Activities that you may do in development to enhance your existing activities and build additional resources
Where should you invest your time?Where should you invest your time?
Evaluate based onCost per dollar raisedTime per dollar raised
How to calculate these statsHow to calculate these stats
1. Track your time for one month2. Group hours by fundraising technique that
you’re using3. End of the month, look at your actual
revenue and expenses4. Group revenue by fundraising technique5. Group expenses (not including your salary)
by fundraising technique
ExampleExample
Direct Mail Spent two hours writing the letter and designing
the package Spent one hour getting the printing ordered Spent 30 minutes scheduling the mailing Spent two hours supervising volunteers to stuff
the mailing Spent 10 hours processing gifts and thanking
donors TOTAL: 13.5 hours
Example (continued)Example (continued)
Direct Mail Revenue from the mailing
20 responses at $50 each: $1,000 Expenses
500 pieces at $2 each, including postage: $1,000
Cost per dollar raised: $1.00 Time per dollar raised: 810 minutes/$1,000
= 47 seconds
ExampleExample
Grant proposal Spent one hour researching the funder Spent 30 minutes on initial contact with funder Spent 2 hours meeting with program staff Spent 20 hours preparing the grant proposal
TOTAL: 23.5 hours
Example (continued)Example (continued)
Grant proposal IF funded: $10,000 Expenses
Postage and printing of proposal: $100
Cost per dollar raised: $0.01 Time per dollar raised: 1,410 minutes/
$10,000 = 8.5 seconds
Typical Priority OrderTypical Priority Order
1. Major gifts (one to one solicitation)2. Corporate grants3. Foundation grants4. Direct mail5. Telemarketing6. Special events
Mission Critical SolicitationMission Critical Solicitation
1. Pick at least TWO strategies2. Diversify your donor base
Make sure you are not reliant on one donor for more than 50% of your revenue
Insuring sustainability of the Insuring sustainability of the fundraising programfundraising program
Regular prospect research Consistent cultivation Appropriate acknowledgment Consistent planning and preparation Regular investment in your tool kit
Mission Critical ResearchMission Critical Research Why do it at all?
Need to continually move more donors into the pipeline Keep what you got and go get more!
Sources Local media Board members Other staff Other donors Other organizations
Time management Once a month An hour or two on this
““Might do” ResearchMight do” Research
Get volunteers involved to share leads Databases
Your local library Regional and specialty databases
Free resources Free e-newsletters Google it!
Mission Critical CultivationMission Critical Cultivation
Whatever is a quick way to touch base at least once Phone Email Note/Postcard Newsletter
““Might do” CultivationMight do” Cultivation
Social Media Engage volunteers in the “touches” Cultivation event
Small shop acknowledgmentSmall shop acknowledgment
Automate where you can: learn how to use your database
Mission critical: one receipt letter with IRS reporting standards
Acknowledgment “Might Do’s”Acknowledgment “Might Do’s”
Volunteer follow up Annual event Other staff member follow up
Program person Executive director
Board member thank you calls
Mission Critical PlanningMission Critical Planning
Financial projections Call planning Deadline mapping
Planning “Might Do’s”Planning “Might Do’s”
Cultivation plans Longer range planning
Mission Critical InvestmentMission Critical Investment
Take the time to invest in YOURSELF!
Reporting and Legal RequirementsReporting and Legal Requirements
There are no “might do’s” here! Form 990 if revenue requires Audit highly recommended At minimum, report to donors
MISSION CRITICAL SUMMARYMISSION CRITICAL SUMMARY Solicitation: pick two primary methods Research: once a month Cultivation: touch base with your donors once a
month at least Acknowledgment: send a receipt within 48 hours Planning: update your numbers, know your deadlines,
and plan your calls in advance Investment: do formal professional development
once a quarter, but learn all the time Reporting and legal: know your requirements and
meet them
Managing your timeManaging your time
Action planningAction planning
Systematize as much of mission critical stuff as possible
Weekly Acknowledgments Solicitations
Monthly Planning Research
Action planningAction planning
Quarterly Personal investment Cultivation updates
Annually Legal requirements
What you needWhat you need
Calendar Computer and telephone Database Library card!
When do you add more staff?When do you add more staff?
When you can’t complete mission critical items with the person you have
When you have opportunities for additional fundraising strategies that will potentially raise more than you need to spend
When you need a level of professionalism to access different donor pools
Options for additional staffing: Options for additional staffing: Hire someoneHire someone
Part-time Pros
Less financial investment Good opportunity to “grow
your own” Cons
Less long term commitment from the employee
Lower level of expertise, typically
Full-time Pros
Investment in resources Longer term commitment Could be higher skill level
Cons Higher financial investment May overextend resources May be a challenge to transfer
duties and responsibilities from incumbent
Options for additional staffing: Options for additional staffing: Hire someoneHire someone
Management Level Pros
Higher level of expertise Longer term commitment,
typically Indicates importance of
fundraising to rest of organization
Cons Higher cost “Empire building” Personality is key
Assistant Pros
Trainability Lower cost in the short term
Cons Level of expertise Who’s doing the heavy lifting?
Options for additional staffing: Options for additional staffing: Hire someoneHire someone
Consultant Pros
Higher level of expertise May be quicker start up Potential for short term
commitment Cons
Higher cost Availability for day to day
operations Familiarity with market
Staff Pros
Grow your own Longer term commitment Potentially less orientation
time Cons
Level of expertise Overall cost with benefits
Options for additional staffing: Options for additional staffing: Use interns and externsUse interns and externs
Interns Great for limited term
projects like events Tend to want to be social
with their work Short term commitment,
but usually unpaid
Externs Older students, so
sometimes more mature Great for limited term,
established projects where they can have discrete responsibility
Need resume building, so you can potentially retain longer
Usually paid
Options for additional staffing: Options for additional staffing: VolunteersVolunteers
Retirees Usually have some level
of professional expertise
Good for ongoing projects, usually
Tend to want to be social with their work
Can have access to useful networks for prospective gifts
Stay at home parents Great for ongoing
administration Can also be good for
one time projects
Mission Critical: Managing staffMission Critical: Managing staff
Don’t forget to add time to manage when you add people Training Motivation Feedback and Evaluation
SummarySummary
We’re not so different from large shops, but we have to be more creative with resources
Identify your Mission Critical items and plan around those things
Add the “might do’s” as you have additional resources
Be prepared to add staff (paid and unpaid) when possible
Questions?Questions?
Contact Information:
Alice L. Ferris, MBA, [email protected]
James S. [email protected]
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