Young Nonprofit Professionals Network Learning Circle The Essentials of Fundraising & Donor Development Week 1 - Developing a Fundraising Plan Jessica Haynie September 27, 2011

22 Today’s Agenda Introductions Overview of Class Exercise Presentation Review Homework Q & A

33 Overview of Class Combination of exercises, presentations, discussions, and homework Week 1 - Developing a fundraising plan Week 2 - Evaluating fundraising program Week 3 - Prospect research (Identification & Qualification) Week 4 - Cultivation & Solicitation Week 5 - Stewardship Week 6 - open topic

44 Learning Circle Objectives Learn how to develop a fundraising plan Learn how to evaluate current fundraising program Become more comfortable and clear in giving the elevator pitch Understand the key phases in donor development Start identifying and organizing top prospects and suspects Develop a telephone script and test it out

55 Exercise The elevator pitch Don’t just repeat your mission statement Tell us what you do and who you do it for Share a quantitative result Provide some perspective Spell out the opportunity

66 Exercise The elevator pitch Find a partner You have 2 minutes to make your pitch and 3 minutes to answer any questions your partner may have Switch and repeat Take notes on went went well, what didn’t go well, things you wish you knew, did you run out of time

77 Why is it important to have a fundraising plan? To help you recognize what you have to work with To define what you need To select your target market(s) To choose your fundraising strategies To organize the steps required to put the fundraising plan in place To demonstrate to the outside world that you are organized and businesslike

88 What are the essential components of a fundraising plan? Mission/case statement Fundraising goals Gift range chart Strategies with action steps Stewardship plan Calendar Budget

99 A case statement is… A clear statement of the need your organization addresses, how you address it, what makes you unique and how others can help A document you can use in drafting all your other publications and presentations An item that requires your board and staff to communicate with each other about the central vision of the organization

10 A case statement is not… Everything there is to know about a specific program Something the board uses to show off its talents A long-winded grant proposal A work of fiction

11 Components of a case statement The mission - Why do you exist? History/accomplishments - Where have you been? Population served - Who do you serve? The problem - What is the problem being addressed? Your strategy - How do you address this problem? The goals - What do you want to accomplish? Development - What will you do in the future? Staff and governance - Who runs and oversees your organization? What qualifies them? Finances - Is your organization fiscally responsible? The ask - What do you need funding for? How will the donor’s investment be used?

12 Good case statements generate: Excitement (positive emotional response) Sense of proximity (nearness to cause) Sense of immediacy (right timing, importance, urgency) Sense of hope (optimism, future orientation) Meaning (perception of match to values, desirable benefits) Sense of reasonableness (feasible, benefits outweigh costs)

13 Identify your goals What does your organization need to fund? Programs, everyday operations, capital enhancements, building an endowment How much funding do you need? Who will it come from? Individuals, foundations, corporations? Are you looking to grow your program or just maintain it?

14 Sample gift range chart for $100,000 annual fund goal Gift Range# Gifts# Prospects$ Raised $5, (5:1)$10,000 $2, (5:1)$10,000 $1, (4:1)$15,000 $1, (4:1)$15,000 $ (3:1)$10,000 10% ofDonors60% ofGoal $189 20% of 106 Donors 318 (3:1) 20% of $20,000 Goal $53 70% of Total 371 Donors 530 donors 742 (2:1) 20% of 1,258 prospects $20,000 Goal $100,000

15 The gift range chart Gift Range# Gifts# Prospects$ Raised 5% of goal210 (5:1)10% of goal 1/2 above420 (5:1)10% of goal 1/2 above1248 (4:1)_________ ________12+__ (4:1)_________ _____________ (4:1)_________ 10% ofDonors60% ofGoal ________ 20% of ___ Donors __ (3:1) 20% of 20% of goal Goal ________ 70% of ___ Donors __ (2:1) 20% of 20% of goal Goal

16 Develop your strategies & action steps StrategySub- strategy GoalsObjectivesAction StepsBy whenBy who Membership Win, Keep, Lift Specific $ goal Sub-goalsSpecific activities to raise $ Ongoing or by specific date? DD, ED, Board, Vol? Major Donors Board Members Special Events Corporations Foundations

17 Develop your strategies & action steps StrategySub- strategy GoalsObjectivesAction Steps By whenBy who Membership Major Donors Board Members Special Events Corporations Foundations

18 Why focus on individuals? 18

19 Giving USA: 2010 Charitable Contributions $ billion 19

20 The individual prospect Accounts for the largest portion of all charitable giving Is more likely to seek involvement with your cause and organization Long-term relationships are most likely to occur

21 How to spend fundraising dollars? Three strategies Win (acquire new donors) Keep (retain donors) Lift (escalate giving by committed donors)

22 Developing a stewardship plan $1-$99$100-$249$250-$499$500-$999$1,000+ Thank you letter XXXXX Newsletter XXXXX s XXXXX Invitations to events XXXXX Annual Report XXXX Phone call thank you XXX Personal thank you note XX Holiday cards XX Annual visit by ED X

23 Developing a calendar Refer to the handout, but keep these tips in mind –Be realistic –Instead of trying to do it all, do a few things really well –Keep non-fundraising activities in mind when creating the calendar

24 Key components of a fundraising budget Supplies (letterhead, envelopes, note cards, etc) Postage Design and printing of publications Travel Meals with donors Event costs Trainings and Conferences Salaries and wages Consultants or outsourced services Memberships/professional associations/publications Database Web-based fundraising and fees (ie credit card processing)

25 Homework Draft a case statement for your organization Print 2 copies and bring to class next week Be prepared to have it peer reviewed

26 Any questions? Three Stones Consulting, LLC Santa Fe, NM