1. 1 Nonprofit Funding Model Discussion 1.Be prepared to discuss what your organization’s primary and secondary funding models are…and why 2.Be prepared to discuss one other classmate’s organization’s primary funding model…and why

2. 2 Lecture 7 – Cultivation & Stewardship

3. 3 Lecture – Cultivation & Stewardship Cultivation the process of fostering the growth of something The next step after qualifying a “prospect” Align with the funding needs of an organization note: which ideally is done well in advance…but not always the case What makes your organization unique? Not necessarily a new donor to the organization –e.g. a special project, campaign, donor upgrade…

4. 4 Lecture 7 – Cultivation & Stewardship Research is required Previous donations (to other organizations) Hobbies Academic affiliations (alma mater) Social networks (peer pressure) Capacity (Wealth Screening) NOTE: Should be mostly obtained by listening

5. 5 Lecture 7 – Cultivation & Stewardship Identify Emotion Triggers Anger Exclusivity Fear Flattery Greed Guilt Salvation These triggers will enable the Development Staff to develop the most effective approach

6. 6 Lecture 7 – Cultivation & Stewardship Merriam-Webster’s Collegiate Dictionary defines Stewardship as “the careful and responsible management of something entrusted to one’s care” Two components: The concept of being responsible for something of value The recognition that what is cared for actually belongs to someone other than the caretaker Translated to: “being responsible for something valuable on behalf of someone who has entrusted it to our care” More than the various functions of the development process Implies a deeper burden of trust, responsibility, and accountability

7. 7 Cultivation & Stewardship Administrative Function vs. Stewardship E.g. “Thank you” –As a formality, we send an acknowledgement letter (usually a form letter) –Are there other ways to genuinely say “thank you”? –Can we make it a little less “form” and a little more specific to the donor and their gift? Some simple tactics: –Pick up the phone and say thank you –Write a handwritten note –Scrutinize your acknowledgement letter so that it is written specific to that one donor for that one gift –Insert genuine thanks where systematic acknowledgements are used

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9. 9 Accountability and Stewardship The Board of Directors is accountable for an organization’s mission; stewardship of its resources Responsible for all legal, ethical and financial considerations Employment of Best Practices to steward human, physical and financial resources The Accountable Nonprofit Organization (1995, AFP ) Acknowledgement of “a public trust to improve the quality of life” A clear statement of mission and purpose along with a description of societal needs, programs and services provided, costs, and benefits Free and accurate sharing of information about governance, finances, and operations as well as openness and inclusivity in programs, processes, and procedures Accountability “to all those it exists to serve, to all those who support it, and to society Cultivation & Stewardship

10. 10 Mission Fulfillment - commits the NPO to integrity in carrying out its philanthropic purpose –Dynamic (not static) –Evolution (should never be fully revised or changed) –Must be capable of real and effective change as the needs of individuals and society change “Leadership on behalf of the public interest” - NPOs are making a difference in the communities they serve E.g.: enhancing social well-being; promoting “inclusiveness, pluralism, and diversity”; appropriate forms of education and advocacy –To what level or extent of making a difference? –Subjective –Ask the organizational stakeholders Cultivation & Stewardship

11. 11 Effective Mgmt as a characteristic of good stewardship AFP’s view of stewardship more narrow than the text Giving, receiving, and managing human and financial resources responsibly are all aspects of stewardship: –Effective governance and management –Responsible development and use of human, physical, and financial resources –The avoidance of conflicts of interest or abuses of power Quality as a characteristic of good stewardship Striving for and achieving excellence in all aspects of the organization and evaluating the total organization and its outcome on an ongoing basis –Quality programming is a result of stewardship –Evaluation of policies, programs, procedures in order to ensure high quality is maintained Cultivation & Stewardship

12. 12 Donor Rights as a characteristic of good stewardship Best illustrated via The Donor Bill of Rights – summarized: Donors have a right to expect complete, accurate, and pertinent information on mission, programs, personnel, and finances Donors have a right to expect that their gifts will be used for the purposes for which they were given and that they will be acknowledged appropriately (with due respect for the donors’ right to privacy and confidentiality). Donors have a right to expect that nonprofit organizations will be professional, truthful, and fully accountable in their dealings with donors and the public at large. Purpose: to ensure philanthropy merits the respect and trust of the general public and that donors can have full confidence in the nonprofits they support Cultivation & Stewardship

13. 13 Justice as a characteristic of good stewardship The entire tradition of American philanthropy is at risk should nonprofits shatter the sacred trust relationship –Voluntary relationship (between nonprofits and donors) –Confidentiality is indispensable to the trust relationship –Relevant donor information (in database) Giving Back as a characteristic of good stewardship “ Stewardship reminds us that what we have is not entirely ours – including our time, our talent, and our energy as well as our financial resources-and it challenges us to share our gifts with others.” (Rosso, 2003) Bottom Line - Nonprofit organizations can only be successful when they are making a difference in the lives of individuals and in the communities being served Cultivation & Stewardship

14. 14 Stewardship is a philosophy that is put into action everyday in nonprofit development offices –Interactions with fellow development officers and other staff colleagues –Interactions with community representative –Interactions with donors and prospect –Interactions with program beneficiaries Cultivation & Stewardship

15. 15 Portfolio Addition What does cultivation mean to you? What does stewardship mean to you? Provide some example or tactics that your personal case practices good stewardship Long Essay - Imagine this scenario: You have just been hired by your personal case organization what stewardship activities would you expand, decrease, enhance, add or subtract and why?