1. (C) 2005 BBBS & The Osborne Group, Inc. 1 Taking Fund Development to the Next Level

2. (C) 2005 BBBS & The Osborne Group, Inc. 2 National Averages Year to year anticipated growth – 5% to 6% annually Strategic growth – double digit –Campaigns or major programmatic or circumstance changes

3. (C) 2005 BBBS & The Osborne Group, Inc. 3 Double Digit Growth

4. (C) 2005 BBBS & The Osborne Group, Inc. 4 Sustained double digit FD growth Invest in FD Improved BFKS, RMM, LMBM, major gifts More 6 and 7-figure gifts Less reliance on a few donors New, high-value corporate relationships Strategic multi-year foundation gifts

5. 5 Balanced Portfolio $5,000,000

6. 6 Balanced Portfolio $10,000,000

7. (C) 2005 BBBS & The Osborne Group, Inc. 7 BBBSA Philanthropy Update Seed capital for investment FD Information and training FD technology

8. 8 The Tarnside Curve of Involvement High Giving Low INVOLVEMENTHigh AwarenessInterest Engagement Commitment Ownership Taking Personal Responsibility

9. (C) 2005 BBBS & The Osborne Group, Inc. 9 Boomers Giving More* *Donor Trends Project Study 7.05 33% plan to increase giving in next five years –12% WWII Average gift $1,361 –$1,138 WWII 40% plan to leave charities in their will –23% WWII

10. (C) 2005 BBBS & The Osborne Group, Inc. 10 High Giver Profile* *2005 CMS Prime Group Study 77% of $1,000+/year donors give to a few favored groups every year 58% say they are knowledgeable (compared to 38% of total respondents) Prefer established groups

11. 11 High Giver Profile* *2005 CMS Prime Group Study College degrees 48% want to be seen as “members” of the group More likely to give a portion to the church (61%)

12. (C) 2005 BBBS & The Osborne Group, Inc. 12 Giving Levels Tied to Loyalty* *2005 CMS Prime Group Study As giving amounts increase, reported loyalty rises as well 81% of $1,000+/year donors say they are highly loyal WWII most loyal

13. (C) 2005 BBBS & The Osborne Group, Inc. 13 Organizations are Losing More Donors* Median loss of 47.8% in 2004 45.9% in 2003 * Target Analysis Group study of DM donors

14. (C) 2005 BBBS & The Osborne Group, Inc. 14 First Year of Giving Matters!* *Target Analysis Group Year One40% Renew Years Two-Four65% Renew Years Five Plus85% Renew

15. (C) 2005 BBBS & The Osborne Group, Inc. 15 Why $1,000+ Donors Stopped Giving* *2005 CMS Prime Group Study Can no longer afford Interests changed Found more effective organization Disagree with organization Dissatisfied with performance Not sure my gift made a difference 64% 40% 36% 35%

16. (C) 2005 BBBS & The Osborne Group, Inc. 16 Why $1,000+ Donors Stopped Giving* *2005 CMS Prime Group Study Issues was solved Haven’t been asked Didn’t keep me informed Other Didn’t keep me involved 13% 12% 8%

17. (C) 2005 BBBS & The Osborne Group, Inc. 17 Boomers More Likely to Stop Giving due to Performance* *2005 CMS Prime Group Study More effective group, dissatisfaction, disagreement –Boomers 40% –WWII 34% –Gen X 32% Not sufficiently informed or involved –Boomers 44%, WWII 39%, Gen X 42%

18. (C) 2005 BBBS & The Osborne Group, Inc. 18 Philanthropy Success Factors Vision Strategic Goals and Plan Multi-year Revenue Plan –“Bottomed Up” –Covering short term needs/contingencies –Projecting for long term needs/investments Fundraising Priorities and Costs

19. (C) 2005 BBBS & The Osborne Group, Inc. 19 Philanthropy Success Factors 1.Resourced philanthropy office 2.CDO with skills and commitment 3.Involved CEO 4.Committed Board with the capacity and inclination to give 5.Balanced portfolio 6.Major Gifts and Stewardship focus 7.A “pipeline” of prospective donors

20. (C) 2005 BBBS & The Osborne Group, Inc. 20 Increased Board Capacity and Commitment

21. (C) 2005 BBBS & The Osborne Group, Inc. 21 Enough Identified Prospective Donors Based on Table of Gifts Minimum of 500 able to give $1,000 and more $5,000,000 a year requires 650 able to give $1,000 to $500,000 $10,000,000 requires 1,200 able to give $1,000 to $1,000,000

22. (C) 2005 BBBS & The Osborne Group, Inc. 22 Focus on Major Gifts from all Sources -- Highest ROI* % of Revenue from Major Gifts 51%35%16%11% Highest Fundraising Performers Top 25%Second 25% Third 25% Bottom 25% *The Advisory Board Study of Top Performing Fund Development Offices

23. 23 Staffing the Functions Priority #1 Chief Development Officer –Strategy –Management –Major Gifts/staff CEO Special Events –Fundraising –Cultivation –Bowl for Kids Sake Individual Giving –Annual Appeals –Raising More Money –Leadership Gifts Corporate and Foundation Giving/Grant-writing Data entry, Reporting and Research Development Assistant and Stewardship

24. (C) 2005 BBBS & The Osborne Group, Inc. 24 A Model for $5M Agencies

25. (C) 2005 BBBS & The Osborne Group, Inc. 25 A Model for $10M Agencies

26. (C) 2005 BBBS & The Osborne Group, Inc. 26 Enhancing Your Plan Based on Philanthropy Success Factors© Assessment –Gather needed data –Complete with ADD Discuss results Identify strengths Identify high impact fixes Enhance plan Monitor progress

27. (C) 2005 BBBS & The Osborne Group, Inc. 27 Building on Strengths High Impact Fixes Easier to move from good to great than from poor to better Highest impact, easiest to execute Must dos

28. (C) 2005 BBBS & The Osborne Group, Inc. 28 The Giving Cycle Identify the “Critical Few”: those with the greatest capacity to give Creating & sharing the BBBS story Developing a relationship Engaging and Involving Asking for a specific amount Saying thank you Providing stewardship and accountability Preparing to ask Acquiring donors to BBBS

29. (C) 2005 BBBS & The Osborne Group, Inc. 29 Stewardship=Joy=More Gifts!

30. (C) 2005 BBBS & The Osborne Group, Inc. 30 Stewardship Plan Calendar Materials Creativity IMPACT AND ACCOUNTABILITY Regularity Personalized for best donors and donors with highest capacity

31. (C) 2005 BBBS & The Osborne Group, Inc. 31 Other High Impact Fixes and Must Dos Vision and vision visits CDO and staffing Training Board development

32. (C) 2005 BBBS & The Osborne Group, Inc. 32 Laser Focused Execution Strengths, Fixes Staffing Systems and technology Budget Prospects Board

33. 33 Donor Pool RMM BFKS Individual Gifts Corporate Sponsors Cause-Related Marketing E- marking Web Site Special Events Your Donor Pool Comes From… Bigs

34. (C) 2005 BBBS & The Osborne Group, Inc. 34 Segment Your Pool Based on Capacity

35. (C) 2005 BBBS & The Osborne Group, Inc. 35 Create a Plan for Each Segment Top BFKS supporters – givers and organizers Top RMM donors Top corporate, foundation, individual donors High capacity low givers Board members Everyone else Stewardship Communications Visits Engagement Solicitation

36. (C) 2005 BBBS & The Osborne Group, Inc. 36 Special Plan for Board Development 320 Assessment Where do you want to be? Getting there!

37. 37 Monitoring and Reporting What is the Board asking for and receiving? What is the CEO asking for and receiving? What is the CDO looking at daily, weekly, monthly, quarterly, annually?

38. 38 Progress Against Goals Sources and Purposes Year to year CorpFoundIndGoal Matches Capital Infra. Other

39. (C) 2005 BBBS & The Osborne Group, Inc. 39 Some Key Indicators % of name by name donor retention % of upgrades % of pledge fulfillment Yes ratio Ask to Amount ratio

40. 40 Moves Management NameCapReadAskMoveDateWho Joe $250k 0-3$ 100k 2.12KEO Mary $100k 9-12 $100K 2.22JM Sally$50k0-3$10k1.31JM Tom$25k6-9$25K1.5JM

41. (C) 2005 BBBS & The Osborne Group, Inc. 41 Dashboard Prospects and pipelineBoard giving and getting Visits and engagementPlan execution and results

42. (C) 2005 BBBS & The Osborne Group, Inc. 42 Resources and Tools Philanthropy Success Factors© New national hire Regional and National Conferences New Toolkit