Community Focus w Statewide Impact w National Network

Fund Development forDEC Coordinators

Exploring Fundraising and Resource Generation

Key Learning Objectives

• Role of fund development for organizations and DEC grantees

• Learn the various fund & resource development responsibilities

• Learn the components of a development plan & how to formulate & implement strategies

• Explore strategies for communicating your impact

The Need for Resources and Support

• Economic Downturn• Competition for funding• DEC grants and overall project costs• Understanding and Implementing Fund

Development

Fund Development Responsibilities

• Accountability• Ethical Principles• Oversight• Participation

Accountability

• Awareness & compliance with the intent of federal, state & local laws regulating charitable solicitation– Attorney General’s Office– IRS– Other

• Establish & exercise adequate controls over fundraising activities

• Accuracy, integrity & accountability in all solicitation activities, materials, representations, etc.

Ethical Principles

• Motivated by mission, merits & resource needs

• Respect for the privacy of donors

• Administrative & fundraising expenses should be fair, reasonable, documented & disclosed (reported on IRS Form 990)

Oversight

• Establish an appropriate governance structure• Ensure development efforts meet the

budgetary needs• Ensure resources are available to maximize

returns• Develop a development plan

Participation

• Personal contribution• Involvement• Identifying and cultivating resources• Government relations• Solicitation

Who’s on First?The Development Committee

• Prepares Development Plan• Models and encourages involvement in

implementation• Monitors and reports progress• Evaluates efforts • Revises plan

Why have a Plan?

• Challenges & replaces magical or wishful thinking

• Coordinates people, fund raising & marketing efforts with the organizational strategic plan

• Gets “buy-in” from participants regarding:– Goals– Roles– Priorities– Accountability

Why have a Plan? (cont’d)

• Helps to pace your annual efforts• Great orientation tool for partners, volunteers,

Board and staff• Creates understanding of everyone’s fund

raising roles & responsibilities• Is outcome-based & measurable which helps

you learn & measure your success

Strategic Questions to Ask

• What are the real needs for the projector organization?

• What are we raising money for?• Would funds raised effect existing funding streams?• Where have the resources come from in the past?• What are our funding trends?• Are the funding streams diversified?• What would be the impact of a funding cut from any

source?• What are we good at?

What is a Development Plan?(or…taking the gamble out of fund development)

A detailed plan that describes how you intend to secure donated resources. It includes:

• The case for support • Fund Development environmental analysis• Goals & Objectives• Strategies• Human resource needs• Budget• Timelines • Accountability• Evaluation

Developing Your Case for Support

• What do you need money for?• How much do you need?• Why would someone want to contribute?

– Benefits to participants or audience– Benefits to the donor– Benefits to the community

Analysis of Fund Development Environment

External Environment (Opportunities & Threats)• Competitors• Community awareness & relationships• Perceptions of activities (quality & need)• Economy

Analysis of Your Fund Development Environment (cont’d)

Internal Environment (Strengths & Weaknesses)• Evaluation of previous efforts• Staffing capacity & support • Financial management infrastructure & technology• Fundraising software• Budget available for development efforts• Volunteers’ commitment to fundraising• Marketing materials

Identify Your Fundraising Strategies

• On-line activity• Special events• Direct mail• Radio, television or print ads• Phone-a-thons • Face-to-face solicitation• Other?

Each Strategy Serves a Purpose

While it may not offer the greatest immediatefinancial return, it may:

• Establish credibility• Generate positive public exposure for organization and

increase public awareness• Reach out to potential new donors• “Set the table” for future gifts• Involve new volunteers--your best ambassadors in the

community• Raise the profile of your cause or mission

Develop a Master Budget

• It takes money to raise money, but how much can you afford?

• Remember that time is money - if it takes time, there is a cost

• Even volunteer-driven fund raising efforts require adequate staffing, space & technology to support volunteers

• Remember to include all costs (direct or hidden):– Staff time– Space and technology needs– Marketing & advertising

So How Did We Do?

Evaluating the Plan• Review & fine-tune the plan annually• Were costs reasonable compared to income?• Were targets & outcomes realistic?• Consider the non-financial benefits of each effort• Are you moving toward your long-term goals?

Who Receives the Money?

Source: Giving USA 2010

Why Focus on the Individual?

• Source of 75% of charitable contributions• Need for unrestricted dollars• Reduced funding from government and foundations• Builds a broad-based support • Requires Board involvement and Builds LOCAL

support

Key Concepts in Fund Raising

• Development is the process of building relationships

• Fund-raising is setting up opportunities to actually ask for money

• 80% of the money you raise will come from 20% of the donors

• Lower income people give a greater percentage of their income than wealthier donors

• The #1 reason people don’t give is because no one asked!

20% Donors, 80%

$80% Donors, 20% $

Success Rate of Fund Raising Activities Based on Ratio of Time Invested to Financial Return

Personal face to face ask by a known peer 50%

Personal phone call by a known peer30%

Personal letter by a known peer15%(on their stationery)

Phone-a-thon (by a volunteer or paid caller)10%

Direct Mail 1-5%

Special Events Least Effective

2009 Online Giving Update…

The average online gift in

2009 was $144.72.

That represents a 5% decline

from 2008, but remains

significantly higher than

other fundraising

channels.

Messages that Connect

• Is it right for your audience?• Keep it Simple• Make it memorable• Unexpected• Concrete• Emotional, tapping into positive or negative feelings

Change Your Message…

Your Message Doesn’t Have to Be…

1. Telling2. A Mission Statement3. Three paragraphs Long4. An “About Us” Page 5. Expensive

Why Me?Why Now?What For?

“I love saving you money.”

(I know what you want)

The “New” Cultivation Process…

Stop being a not-for-profit.Why do we define our selves in the negative? It makes no sense.

Does your organization exist to ‘not make any money?’

Or, does it exist to save lives, change lives and

impact lives.

Connection to Impact Drives Potential for Income.

Source: www.forimpact.org

Cultivate Plants… Relate to People…

• Old: The higher the ask the longer the “cultivation period.” New: The bigger connection to impact the better the

partnership

• Old: Major gifts are infrequently asked for or given and require a personalized cultivation plan and solicitation.

New: Partnership opportunities are presented when good partners present themselves. Both parties bring value to the table and help each other reach their goals.

• Old: Nonprofit “charities” ask for donations. Giving is the ‘right thing to do.’

New: Nonprofit businesses provide opportunities to invest in your community, and see the return for the people, region, cause you care about.

Remember Why People Give

• Share goals the organization pursues• Personal connections with staff, board, clients or

volunteers• Personal gratitude toward the organization• Involvement in the life of the organization• Enlightened self-interest• Being asked• Joy

Case Study In Making It Simple: “In A Nutshell”

What? Why? How?Support Build Stronger

NonprofitsComprehensive Services

Plan Community Engagement

Collaboration

Advocate Give Voice to All Education & Lobbying

“The Soap Box and Toolbox for New York’s Nonprofits.”

What’s Your ‘Impact Statement’?

Impact Statement

WHAT WHY HOW

Best Practice Summary

• Choose your fundraising methods strategically• Build organizational capacity and infrastructure• People give to other people - establishing relationships are

key• People give because of self-interest - know what motivates

your donors• You are asking for investments and partners, not charity

and prospects• Developing a compelling message is critical• Money follows people - get prospects involved• Few people give without being asked

Added Ideas, Comments, Questions???