1. The Salvation Army National CDR Conference
April 20 & 21, 2016
Lisa Bennett, Faculty Member
The Fund Raising School
Indiana University Lilly Family School of Philanthropy

2. Creating a Strategic Development Plan
Effective fundraising depends on effective fundraising planning and rigorous execution. 
Planning includes a thorough review of six fundraising management functions: 
analysis, planning, execution, control, evaluation and professional ethics.
Fundraising is not a simple exercise. It is a complex process which requires extensive involvement of people in the factors and elements defined in the Cube and in the pursuit of the process as described in the Cycle.
The professional fundraising executive's responsibility is to manage the process, serving as a catalyst and leader for all who must be involved, if success is to be achieved.

3. The Fundraising Cycle Awareness of Marketing Principles
Planning Checkpoint: Examine the Case
Strategic Checkpoint: Demonstrate Stewardship and Renew the Gift
Planning Checkpoint: Analyze Market Requirement
Planning Checkpoint: Prepare Needs Statement
Action Checkpoint: Solicit the Gift
Planning Checkpoint: Define Objectives
Action Checkpoint: Activate Volunteer Corps
Action Checkpoint: Involve Volunteers
Planning Checkpoint: Prepare Communication Plan
Planning Checkpoint: Prepare Fundraising Plan
Planning/Action Checkpoint: Validate Needs Statement
The Fundraising Cycle is based upon an awareness of marketing principles and how they are applied to the fundraising process.
Examine case and prepare case statement in order to develop convincing and intelligent responses to these questions.
Why (mission) does the organization exist? That is, what is the human/social problem or need which it addresses?
 What (goals) does the organization do to address these problems/needs?
 Why should anyone support the organization?
 What benefit will accrue to those who support it?
Analyze Market Requirements
The organization's case, objectives and needs must be tested against what the market wants and needs.
Do markets (or segments of markets) value, like, use NPO's approach to solving a specific human/social problem?
Lack of understanding or acceptance by the market place of the needs being addressed by the NPO, or of the NPO itself, will constitute major obstacles to fundraising.
Prepare Needs Statement
 Program plans are projected for one, two and three to five years. 
Do in-depth financial planning, including resources required and sources of revenue.
 Involve key volunteer (board) leadership.
 Needs statement should include operating, endowment, and capital requirements.
Define Objectives
Translate mission and goals into specific and measurable solutions.
Objectives become the "how."
 Objectives must be realistic and achievable by the organization based upon adequate development of resources.
 Plan programs. Programs are objectives in action.
Involve Volunteers
Board members have been involved throughout the process thus far.
 They must accept the volunteer role in fundraising and move towards the next steps of the Cycle in developing the right fundraising program.
Fundraising responsibility and authority rests with the entire governing board. Development committee or other committees can lead out in this.
Validate Needs Statement
 Board and other key volunteers must continually study and validate needs. Are they defensible and credible?
Staff can never assume that past acceptance of needs during the planning process is sufficient for volunteers to give and get gift support.
Evaluate Gift Markets
Identify and analyze gift markets. Determine ability and perceived ability to give.
Subdivide each market according to potential and complexity of source. Use most effective allocation of all resources for fundraising.
Focus of gift market evaluation should provide as much diversity in source potential as possible in order to achieve a resilient donor base in the dynamic and ever-changing fundraising environment.
Select Fundraising Vehicles
Gift market evaluation provides the basis upon which to select which fundraising techniques must be applied to obtain contributions.
Application of each of the vehicles varies and must be creative depending upon the NPO and its specific markets.
 Cost benefit ratios and testing of various techniques are needed.
 The management process of analysis, planning, execution, control and evaluation is key to successful use of vehicles.
Identify Potential Giving Sources
This step refines the gift market evaluation process.
Develop specific lists of donor prospective donors.
Prospective donor development is based upon identification of data which provides information on each prospective donor: linkage to the NPO, his/her interest in the cause, and ability to give to the cause.
Volunteer involvement, through a prospective donor development committee, builds this resource plus provides for further ownership of the fundraising process within volunteer ranks.
Prepare Fundraising Plan 
So far there has been fact gathering and preliminary planning.
The results must now be translated into a draft fundraising action plan.
Professional staff drafts the fundraising plan and then involves volunteer leadership in the process of refining and validating it.
Build in monitoring and evaluation so that plan can be modified when necessary.
Prepare the Communications Plan
Understanding of the organization's mission, goals and objectives by those who will be asked to support it with their gifts is fundamental to successful fundraising.
Communication for effective fundraising is not simply data dissemination.
It is the creation and delivery by the most appropriate means available of information which will stir the emotions and intellects of people regarding the worthiness of the cause.
The key objective of fundraising communications is to lead donors and prospective donors to an understanding and acceptance of the NPO and its purpose. They will also want to see that the purpose is fulfilled.
Activate the Volunteer Corps
Fundraising is a people business and although it may sound trite, "people give to people with causes", not to causes alone.
The effective fundraising NPO must continually look to renew and expand its volunteer corps of fundraisers because each volunteer involved represents in program results.
Direct personal solicitation, by visit, letter or phone call, is the most effective fundraising technique and requires at least one volunteer for every prospective donor to be solicited in these ways.
Solicit the Gift
Twelve phases of the Cycle have been completed in preparation for this phase.
 Gifts from the board, key volunteers and staff may have been a part of some previous phase, if appropriate.
This phase is the culmination of all the previous accomplishments.
A missed phase or inadequate dealing with any of the previous phases will show up at this stage by failure to achieve the fundraising objectives.
Steward and Renew the Gift
Solicitation of a gift is not an end in itself. It is a means of developing that personal link with donors, involving them in the NPO; and developing an advocate for the organization.
Acknowledge, stewardship, accountability and disclosure are key components to the NPO being able to renew and increase gift support from donors.
Renewal of gift support is not only based upon the previous gifts.
Also need to go back to Phases 1-3 of the Cycle to validate and re- validate in order to demonstrate continued worth, effectiveness and need.
Planning Checkpoint: Identify Potential Giving Sources
Planning Checkpoint Evaluate Gift Markets
Planning Checkpoint: Select Fundraising Vehicle
Source: Adapted from Tempel, Seiler, & Aldrich, eds., Achieving Excellence in Fund Raising, 3rd edition, p. 11. Copyright © 2010 Jossey-Bass Inc., Publishers. Reprinted by permission of Jossey-Bass Inc., a subsidiary of John Wiley & Sons, Inc.

4. Plan Components Mission, Vision, Values
SWOT Analysis of the development program
Goals – based in Str. Plan and in reality
Markets for donations
Methods or vehicles for soliciting donations
Structure / personnel (incl. volunteers)
Timeline (who does what by when)
Budget – income and expense
It is useful to make the point that for fundraising to succeed, the fundraising manager often does not have control over some of the elements that needs to be managed. For example, the strategic planning process may rest elsewhere in the organization, but the fundraising manager cannot succeed without a strategic plan in place. The fundraising manager must learn how to negotiate, to provide leadership, to get things done or to have other offices get things done in order for the process to be successful.

5. Institutional Readiness
Next to weakness in integrating fundraising management with the total management of the NPO, this is the most frequent problem area in fundraising.
Too many assumptions are made by staff and volunteers about constituency, commitment, case, needs and goals in relation to effective fundraising.
NPOs often rush past this factor and move into markets and vehicles without proper preparation for addressing the right market with the right vehicle.

6. Markets
Sources of philanthropic support which every NPO must define and identify in relation to their specific product (i.e., Case, Needs and Goals).
Changing social and economic environment creates variations in strengths, weaknesses and interests of specific markets which must be carefully monitored by the fundraising manager.
 Individuals still offer NPOs the greatest basic and most flexible gift support.
Fundraising manager's time needs to be allocated in preparation to best market source potential for his or her NPO.

7. Human Resources
Effective fundraising requires participation of a team of people--volunteers and staff-- all of whom accept responsibility for leading, at different times, in different ways.
Motivation for participation comes from within each individual and is triggered by one or more tangible or intangible factors; e.g., affiliation, achievement, intellectual interest, status, power, social control, social change.
Experience has demonstrated that weaknesses in institutional readiness and other factors can be overcome with the involvement of the right leadership, but it is very rare for weakness in leadership to be compensated for by strength in other areas.

8. Vehicles
Techniques which are used to enlist gift support.
Some often used in conjunction with each other; e.g., the big gift as a part of the annual appeal; seeking deferred gifts as part of a capital/endowment campaign.
A fully mature development program will utilize all techniques in varying degrees of intensity depending upon the environment and the constituency.

9. Dynamic Functions
The bottom line or culminating factor of the Cube.
Brings all other factors into integration and support with each other in order to achieve results.
Links back to every other factor and element and will not bring results if key steps in the development of other factors are weak or have been ignored.
Work with the cube daily. Whatever side or sides you don’t see are “blind spots” and will cripple your fundraising program.

10. 10% of the donors give 70% of the money
Gift Range Chart
10% of the donors give 70% of the money
20% of the donors give 20% of the money
70% of the donors give 10% of the money
A gift range chart is a planning device to determine the quality and quantity of gifts required to assure the success of a fundraising effort. The chart can be used for the following.
Planning.
Internal education.
Prospective donor involvement.
Volunteer training.
Determining variety of designated gift opportunities which are congruent with the needs of the organization.
The chart is devised initially on a mechanical basis to accomplish the ratios. After the chart is drawn up, the following steps take place.
1. Evaluation of the chart in terms of market capabilities.
2. Adaptation to potential for designated gift opportunities.
3. Adjustment in relationship to the number of validated prospective donors identified in relation to the required gifts.
Explain the use of the gift range chart for the annual fund by reviewing national fundraising patterns demonstrating the following percentage distribution of gifts received in annual giving programs.
10% of the donors give 60% of the funds.
20% of the donors give 20% of the funds.
70% of the donors give 20% of the funds