1. Preparing Non-profits For Success Governor’s Grants Conference September 12, 2011

2. The Community Foundation of Anne Arundel County (CFAAC) Founded in 1998 1 of 14 Community Foundations in the State of Maryland More than $3 million in grantmaking over the last 5 years Small, growing non-profit

3. Mission and Vision of CFAAC Connecting people who care to contribute to causes that matter To achieve a lasting positive impact on our community through fostering philanthropy Care. Connect. Contribute.

4. What is a Community Foundation? A community foundation is a philanthropic vehicle that combines the charitable gifts of many to provide leadership and financial leverage in addressing the current and future needs of the community through various grant making activities designed to improve the lives of the citizens of that community. Their board’s are comprised of people from the community There are approximately 700 community foundations in the U.S. and 13 in Maryland

5. Today’s Discussion: How to thrive in this difficult economy? What do you want to take away from today’s discussion? What is your biggest challenge? Hope is NOT a plan!

6. Agenda Internal Review – Who are you? Where are you going? External Review – What is the landscape? Who is your competition? Strategic Planning Fundraising Role of the Board Q&A

7. Internal Review What is your role in your community? What are your assets and capabilities? Who do you want to be? What are your values as an organization?

8. Conduct and In-depth Financial Analysis What are you key products and/or services? How much do they cost you to offer/manage? How much revenue do they generate? Can you diversify your revenue sources and keep to your mission? Is your business model sustainable?

9. Tough Decisions What are your loss leaders? (a product offered at a low or discounted price to stimulate other purchase – in our case other types of involvement) What activities/products/services should you cut, de-emphasize, or pass on? Do you have the right staff in the right positions? How can you be more efficient?

10. External Review Do some research of the industry and your market What are the opportunities? What are the threats? Who are your main competitors and what are they doing to respond? How can you differentiate yourself?

11. Strategic Planning: 4 Elements of a Common Process Analysis Synthesis Programming Implementation External environment Internal assets, capabilities and resources Quantitative and qualitative Brainstorming/ creativity Financial/other analysis Vision, mission, values, goals All/subset of the “5 Diamond” model elements Translation into specific initiatives aligned with the strategy Align structure, systems, staff, skills with new strategy Reinforce with new performance metrics and contingency plans “Divergence” “Convergence”

12. Porter’s 5 Forces 2. Vehicles Internal development? JVs? Licensing/franchising? Acquisitions? 3. Differentiators (value proposition) Image? Customization? Price? Styling? Product reliability? 1. Arenas Products? Market segments? Geographies? Technologies? Stages of the value chain? 4. Staging Sequence of moves? When (how fast)? 5. Economic logic (source of competitive advantage) Premium pricing through superior products, service, brands, etc.? Low cost through superior processes, scale, scope, etc.? Inimitable assets, capabilities, relationships, etc.? 1 2 3 45

13. CFAAC 2011 Focus Care - Connect - Contribute caring community to enhance the quality of life for all. VISION: To achieve a lasting positive impact on our community through fostering philanthropy. MISSION: Connecting people who care to contribute to causes that matter. Values Strong, Effective Local Nonprofits Recognized Community LeaderPermanent base of charitable dollars. Goals Strategies Excellent Donor Service TrustedVisionaryLeaderInnovativeResponsive Collaborative Impact Expand donor communication and tools for giving Grow fee-based services for family & corporate foundations Enhance investment management services Expand free and fee-based capacity building services Increased average fund size from $44K to $100K Increased annual revenue Improved donor satisfaction Shorter response time for donor inquiries/transactions Increased total grant making from $700K to $1 million/year Unrestricted grant making increased from $100K to $250K Total assets grew from $2 million to $8 million Increased known legacy gifts from $2 million to $4 million Increased total funds from 50 to 100 Advanced key measures in needs assessment Needs assessment used by other funders and agencies Increased number of donors giving through CFAAC Grow Impact Funds (2 to 5) and capitalize ($500K per fund) Increase operating support to vital nonprofits Target high net worth individuals to contribute directly to our mission. Create Legacy Society and partner with prof. advisors to promote legacy giving Solicit private foundations to support our mission. Define, track and measure success of grants Expand needs assessment to cover all impact areas Increase community dialogue and problem-solving

14. Fundraising Is this how you feel about it?

15. Inspiration Fundraising is the gentle art of teaching the joy of giving. In good times and bad, we know that people give because you meet needs, not because you have needs You make a living by what you get. You make a life by what you give. – Churchill No person was ever honored for what he received. Honor has been the reward for what he gave.- Calvin Coolidge

16. The Science of Fundraising Identify your target audience Tailor your message to your target audience Develop a prospect list and prioritize Focus on individuals Set goals - # of meetings per month, # of new gifts, total amount raised Ask! Ask! Ask!

17. Moves Management “The moves concept focuses major gift fund raising on changing people's attitudes so they want to give. To do this, we take a series of initiatives or moves to develop each prospect's awareness of, knowledge of, interest in, involvement with, and commitment to the institution and its mission.” –David Dunlop ƒ A disciplined and intentional process ƒ Using “moves” and “managers” to keep donors and donor prospects invested in a nonprofit organization.

18. “Moves” The Process –6 Pivotal Steps Review the prospect/donor relationship with your organization Plan the most beneficial next moves (donor-centered) Coordinate and check plans with others involved Execute the moves Evaluate what transpired Report back to the individuals involved SUCCESS is based on the… Quality Frequency Continuity

19. Board Members Small shop vs. big shop Size Diversity Clear roles and responsibilities Training and orientation

20. The Role of Board Members Governance Donors Referral Agents Advocates

21. Conclusion Take a close look at yourself and what is going on around you Develop a plan Fundraising is sales Determine the best role for your board based on your organization and its’ needs

22. THANK YOU! For more information please contact me: Bess Langbein, Executive Director bess@cfaac.orgbess@cfaac.org or 410-280-1102