Dollars & $ense How to Build a Development Program

What’s Important? Creation of a Public Trust Revenue Stream: Earned vs. Contributed Fundraising vs. Development Marketing vs. Development Maxims of Development Things to Know Taking Action Evaluation Renewal 2

Public Trust Other People’s Money (OPM) State and Federal Regulation Act in Public Interest Responsibility to Others 3

Revenue What is Your Business Model? Timing? Revenue Mix? Earned Revenue? Contributed Revenue? Process for Generating Revenue Fundraising Development Marketing 4

Fundraising vs. Development Fundraising is a One-Time Activity, a Dash for Cash. Development Seeks a Long-Term Involvement or Relationship With a Donor, Maximizing Their Interest in the Org. (Donor Centric) Development Requires Strong Listening Skills Great Fundraisers Combine Listening With an Understanding of How to Match the Donor’s Motivation and Values With the Org’s Solutions Leadership Skills are Key Development Skills 5

Marketing vs. Development Marketing is the Promotion of an Org. to the General Public with the Expectation that Qualified Leads Will Become Prospects Development Focuses on Building Relationships with Prospects so They Become Donors Marketing Deals with Broad Populations; Development with a Specific Group 6

Maxims of Development An Organization has No Needs. It has Solutions Seek Investment, Not Charity Follow the Money Org has a Past, Present and a Future You are Not Alone What You Do, Matters Make Your Work Satisfying and Enjoyable What Goes Around, Comes Around 7

Finance, Accounting & Development Financial Reports are a Look Backwards Development Reports are a Look Forwards Finance and Development Numbers Rarely Agree; But The Accounting Has To Be The Same Financial Accounting Standards Board (FASB) Rules Apply. Understand Them Become Facile With All Forms of Financial Data Read Balance Sheets; Not Budget Narratives 8

Ethics and Governance Good Governance Mission Anchored in Community Solutions, Not Institutional Need For Money Laser Clear Case That Speaks to Philanthropists Informed and Committed Leadership Excellent Communication Capabilities Action Trusted Steward of Resources 9

Good Governance The Duty of Care: Acting the Way That a Prudent Individual Would in Similar Circumstances The Duty of Loyalty: Placing the Org’s Interest Above the Individual’s Own The Duty of Obedience: Acting in Accordance with the Law and the Org’s Own Bylaws and Policies 10

Leadership Defining leadership roles Board, Volunteers and Staff Professional Services Recruiting, Educating and Motivating Volunteers Managing Expectations 11

Desirable Characteristics Integrity and Accountability Informed Judgment Financial Literacy Mature Confidence High Performance 12

Obstacles to Good Governance Fears Ineptitude What Others Might Think Asking Questions and Appearing Uninformed Expressing Opinions Other Board Members Lack of Knowledge Subject Area Philanthropy Organizational Roles & Processes Lack of Skills: Leadership and in Being Inclusive and Collaborative 13

Environment: Competition and Collaboration There Are Few New Ideas; There Are Better Business Models Entrepreneurism vs. Apprenticeship Learning Partners Conduct an Environmental Scan for Potential Competitors and Collaborators Funders LOVE Strong Collaborations Collaborations Rarely Work Unless the Budgets are Clear 14

The Building Blocks Vision Mission Strategic Planning Case Statement/ Publications Gift Opportunities Campaign Action 15

Venture Funding Grantwriting vs. Individual Donors Involve Key Prospects in Creation of the Building Blocks Is Everyone Committed? Have You Done What You Said You Would Do? What Conversations or Corrections are Needed? Reports? Evaluations? 16

Relationships: People & Participation Board and Other Volunteers Board’s Responsibility is Org. Governance Policy Formation Decision Making (Retain or Delegate Authority) Oversight (Monitoring, Assessment, Feedback) Development (Donor, Fundraising, Advocacy) Donors and Prospects (Care and Feeding) Staff (Vision and Implementation) Suspects and the General Public 17

Taking Action Identify Prospects Research Prospects Strategize With Volunteer and Staff Cultivation and Making the First Call Solicitation Making the Close Follow Up 18

Renewal Pay Your Dues! Development/Leadership Requires Renewal You Will Become Wealthy, But Not Rich The Wealthy Barber Invest in Yourself Bibliography/ Associations You Can Change the World, or Your Part of It Always Be Interested in People 19

Go Build Your Dream!