June 14, 2006

AGENDA FOR THE DAY: FUND RAISING FOR ECONOMIC DEVELOPMENT RDG background Process for generating funding Do’s and Don’t’s

WHO IS RESOURCE DEVELOPMENT GROUP, INC.? HISTORY • Since 1990 Managed 100 Campaigns Raising over $500 million specifically for Economic Development SPECIALTY • Delivering Customized Fundraising Solutions to Economic Development Organizations CLIENTS Regional EDC’s • Large and Small, Urban and Rural EDC’s • Chambers with Economic Development Programs Statewide organizations

SAMPLE MAJOR MARKETS

SAMPLE OHIO CLIENTS

HOW DO WE RAISE MONEY? • Targeted Program and Funding Assessments • Organize, Manage and Execute Broad Based Campaigns • Direct Solicitation Methodology Volunteer Campaign management Hybrids • Team Approach • Guaranteed Goals

AGGREGATE ED FUNDING IN SELECTED OHIO MARKETS In Ohio Markets of population 100,000 and below: Average ED funding = $265,000 per year Per Capita ED funding $4.35 Revenue spit: 50% private 46% public 4% fee generation

HOW ARE WE DOING?

ASSESSMENT GOALS Allows Organization to Objectively Evaluate: Its Image Program support among key constituents Business Government Foundations Potential funding support Best campaign structure Leadership Style and approach

ASSESSMENT PROCESS • Leadership/Staff Planning Session Identify interview targets Develop pre-case • Pre-Case Document Proposed Programs/Projects Benefits, Outcomes, Results Target Budget • 50 to 60 confidential interviews 3 to 5 Focus Groups

ASSESSMENT RESULTS • Broad-Based Consensus/Ownership • Blueprint for Launching Funding Model • Confidence of Achieving Funding Goal

WHEN SEEKING INVESTMENTS: • What is the money for? • Who is in charge of spending? • What is everyone else giving? What do you need from me?

WHAT IS THE MONEY FOR? Case Statement must reflect: Past Performance Future Potential Benefits, Results, Impact Demonstration Packet Mission Action Plan Goals & Objectives Program/Project Budget Investor Benefits/Relations

WHO IS IN CHARGE OF SPENDING? • Volunteer Board Leadership • Campaign Leadership • Professional Staff

WHAT IS EVERYONE ELSE GIVING? • Underwriting Opportunities • Sector Analysis/Matrix • Investment Levels • Funding Example $1,000,000 Goal 1 @ $100,000 = $ 100,000 2 @ $ 75,000 = $ 150,000 6 @ $ 50,000 = $ 300,000 8 @ $ 25,000 = $ 200,000 10 @ $ 10,000 = $ 100,000 30 @ $ 5,000 = $ 150,000 $1,000,000

SOLICITING INVESTMENTS • Volunteer Board of Directors • First-Tier Prospects (Top 10-15) • Long-Range Prospects Foundations Trade Associations • Second-Tier Prospects • Third-Tier Prospects • General Phase (if needed)

PREP PHASE Finalize Case Statement Finalize Campaign Theme Recruit Campaign Leadership Develop Correspondence and Demonstration Packet Develop Master Prospect List Complete Prospect Research Implement Administrative Systems

LEADERSHIP PHASE Board of Directors First-Tier Investors/Prospects Community, State, and National Foundations Other trade groups

PUBLIC PHASE Board of Directors First-Tier Investors/Prospects Community, State, and National Foundations Other trade groups

Pledge redemption/Accounting System Campaign Celebration Event CAMPAIGN WRAP-UP Pledge redemption/Accounting System Campaign Celebration Event Investor Recognition/Relations

DO’S AND DON’T’S DO: Be personally engaged Communicate with your stakeholders Exercise leadership Be open-minded and creative Have a vision and implementation plan

DO’S AND DON’T’S DON’T: Ready, shoot, aim Take a back seat Leave it to your board Wait until the last minute Artificially deflate (or inflate) expectations

QUESTIONS?