‘What Fundraising role and responsibility does the Board have in resource development’ 13 February 2019

“No one has ever become poor by giving”. – Anne Frank Fearless fundraising “Fundraising is the gentle art of teaching the joy of giving”. – Henry Rosso “No one has ever become poor by giving”. – Anne Frank www.thirdsector.co.za

A bit of background…. Third Sector Insights NPT bridges the divide between the corporate world and the 'Third Sector world', by engaging with for-profit and non-profit (social profit/for purpose) organisations. We understand the dynamics at play in both environments, and create a platform from which both can understand and engage with each other for shared benefits. The Main Objective of the Trust is to promote improved applied governance and performance by equipping governing bodies of non-profit organisations to implement best practices in governance with a commitment to providing optimal return and social impact on revenue. www.thirdsector.co.za

Where do we fit? Non-profit agenda : Empowered boards, Social impact and long-term sustainability through responsible corporate stewardship Profit agenda : Return on Investment with a responsible ethos Corporate Responsibility is where profit and socio-economic development agendas overlap Where does Third Sector Insights fit? www.thirdsector.co.za

Fearless fundraising Session approach: Sector overview Complete questionnaire; View ‘Speaking of Money – A guide to Fundraising for Non-profit Board Members’ (BoardSource); Critical Fund Raising skills for the Board Brief discussion around critical issues www.thirdsector.co.za

Number of NPOs registered on the DSD’s NPO register Type of Organisation Number of Registered NPOs as indicated in the DSD report 2012/13 (March 2013) Number of Registered NPOs as indicated in the DSD report 2014/15 (March 2015) Number of Registered NPOs as indicated in the DSD report 2015/16 (March 2016) Number % Non Profit Companies 3069 3 8187 6 9322 Non-profit Trusts 2046 2 1364 1 1554 Voluntary Associations 97182 95 126902 93 144491 Total 102297 100 136453 155 367 Registered NPO’s as at 13/02/19 Current total registered 206 618 De-Registered NPOs 307 Total Applications in Progress 1607 Source: DSD State of NPOs reports 2012/16 (March 2016)

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4 : 1 (Social Return on Investment) Investment in Sector? Corporate Stewardship Government R --- Billion ? Individuals Corporate SA Lottery & other IMPACT - OUTCOMES Governing Body Sectors & Issues 4 : 1 (Social Return on Investment)

Board Member Self-Assessment - Development and Fundraising Effectiveness. www.thirdsector.co.za

Introduction to the DVD During the 30 minute DVD, you will see board members discuss their experiences with many kinds of nonprofit organisations. There are no actors in this DVD Each board member speaks from his or her own very real experiences. The wisdom and insights are uniquely theirs The host is Hugh Downs, Past Chairman of the U.S. Committee for UNICEF and as the co-host of ABC television’s 20/20 news magazine. www.thirdsector.co.za

Critical fundraising skills The session is designed to raise the expertise and comfort level of board and staff members in these five critical areas: Understanding the development process; Cultivating prospects; Articulating the case for support; Making the ask; and Maintaining donor relations. www.thirdsector.co.za

Critical principals - Understanding Development and fundraising are not synonymous: development is the process and fundraising is the result Board members are essential to the development process as it applies to individual prospects; they are the link with the community The entire board, not just the development committee, must be involved with the development process www.thirdsector.co.za

Understanding cont/… Board and staff must work as partners throughout the entire process There must be 100 percent commitment by the board to support the organisation financially. Board members cannot ask until they have given. www.thirdsector.co.za

Cultivation The entire board should be involved in the identification and cultivation of individual prospects There is no substitute for personal connection a board member provides to a potential donor Cultivation is relationship building. It must be planned and consistent and be on a time line leading to requesting funding. Without cultivation, the request for funds will probably be difficult and the results less effective than when the relationship has been established. www.thirdsector.co.za

The Case You must have a case for support and be able to tell others about it, in order to be effective in requesting funds. Your case is the summary of the reason the organisation exists, the needs you are meeting in the community, and why Focus on your results, not your needs as an organisation. People invest in organisations that have a positive impact on their community www.thirdsector.co.za

The Case/… Different prospects will want to hear different parts of your case. Be sure to adapt your message appropriately to the interest of the prospect Know your prospect, know your organisation, and convey the reasons why an investment in your organisation will give satisfaction to your prospect. www.thirdsector.co.za

The Ask Organise your campaign around key prospects who have been identified and cultivated Strategy is critical in the requesting of funds. A successful ask has been described as the right person asking for the right amount at the right time. Research your assignments carefully and wisely and watch your timing Some people will want to include their friends; others prefer to ask those they do not know well. Be sure to assign prospects with whom the prospect is going to feel comfortable www.thirdsector.co.za

The Ask cont/… Use inclusive language when asking for ‘gifts’ (“join with us…”) There is no substitute for Peer-to-Peer fund requests All board members should participate in the development process, even though some may never ask for funds directly. www.thirdsector.co.za

Stewardship Responsible stewardship is being used more frequently by informed social impact investors A new relationship begins when a gift is made Donors like to know their gift has made an impact Donors like to hear from an organisation between asks Stewardship is very much like cultivation www.thirdsector.co.za

Stewardship Stewardship is a key step to the development process – the one that ensures future gifts. This is core critical to stakeholder engagement Understanding donor motivation (giving back, peer pressure, etc) can guide your stewardship practices so that they fit the donors needs and preferences Board members are key players in stewardship, and in all steps of the development process. www.thirdsector.co.za

Sample Fundraising Committee Term’s of reference Lead board’s participation Partner with staff to develop fundraising plan Develop fundraising policies, plans, procedures, and schedules for board Develop board members fundraising skills and techniques www.thirdsector.co.za

Sample Fundraising Committee Term’s of reference continued Propose minimum board member contributions Solicit contributions from board members Lead the board’s effort in identifying, cultivating, and approaching major donors

Way forward This session was prepared with you in mind: the non-profit organisation that wants to improve the Boards engagement and it’s effectiveness in fundraising. As you implement the techniques and discuss its concepts along with the information shared from todays session, consider it all as the platform for building this essential board function. www.thirdsector.co.za

Fearless fundraising “What you leave behind is not what is engraved in stone monuments, but what is woven into the lives of others.” Quote by Pericles www.thirdsector.co.za

ourGOVERNANCE © is an e-learning programme for governing body members of Non Profit Organisations. The objective of the programme is to provide governing body members of Non Profit Organisations with the understanding, guidelines and information they need to enable them to manage their organisation, its affairs and undertakings effectively, comply with legal and legislative requirements, and to fulfill the obligations and expectations incumbent upon them as governing body members.   The e-learning programme is grouped under four modules covering fifteen sections in total. www.thirdsector.co.za

E-learning programme.

E-learning programme.

Special Offer Admin fee only! Go to: www.thirdsector.co.za When prompted during your registration process, input the following code: 580BA70807 Valid until 28th February 2019. ourGOVERNANCE normal registration fee R1200. For this limited period only pay the administration fee of R350