2. Creating and Maintaining an Effective Fund-Raising Program Suzanne Mink World Wildlife Fund July 18, 2005

3. What is development anyway? It is about people It is about meeting goals designed by and with IPL The focus is on values The focus is on the donor, less on IPL It is not just about dollars

4. Philanthropy is not a reply to a question

5. Non Arboribus Crescit !

6. Mass Marketing - NOT! We are no longer in mass marketing, nor is development We are seeking share of “customer”, not customer share 90% of the dollars come from 10% of the donors

7. Fundraising is about relationships We are in the business of creating relationships –Cultural –Attitudinal –Value –External and internal What is important is the number of ways we communicate

8. Why do most people give? They have been asked The believe in the institution They respect the solicitor They want to give back They want to alleviate guilt They want to memorialize others

9. Criteria for Successful Fund Raising Case for Support Internal Preparedness Volunteer Leadership Potential for Support

10. Techniques used in solicitation Direct Mail Memberships Telephone In person In person by committee Grant proposal Government Planned Giving proposal Special events Foundations Corporations

11. Development Annual Giving Major/Planned Giving Corporate & Foundation Relations Grants & Contracts Capital Campaigns Prospect Research Proposal writing Stewardship Special Events Volunteer Management

12. How are Gifts Made? Outright –Cash –Credit Cards –Stocks Life Income –Trusts

13. Who Gives?

14. Why Do They Give? Interest Serve as a Board member, Staff, Regularly attend functions Capacity Have disposable income (not necessarily wealthy) Low overhead expenses (house is paid, children out of college) Motivation Philanthropic nature They were asked

15. Who Has the Interest, Capacity & Motivation to Give? Donors that give to similar organizations Volunteers

16. Some fund-raising myths! Hire a development officer and let him or her do all the work Fund raising is unpleasant and people who like it are strange Selling is the name of the game

17. Qualities of Development Officers Analytical/problem solving Creativity Uses time effectively Lsitening skills Self-starter

18. The Duties of a Development Officer Serve the administration and board through fund-raising assignments Develop a plan that includes goals for obtaining funds Promote loyalty Enlist and train volunteers Cultivate donors and prospects Ask for gifts

19. The Duties of a Development Officer Communicate effectively Keep a schedule Accept responsibility

20. Important skills of development officers Listening Working as a team Excellent communication

21. General Staff Assignments Fund raising Gift Processing Donor Records Thank you letters Computer records Mailing lists Board coordination Research File keeping Mail assembly Maintain equipment

22. Basic Budget Salaries of Staff Equipment Equipment rental Postage Printing Telephone Travel Meals Dues/memberships Consulting fees Supplies Entertainment Volunteer committees List rentals Books/periodicals Professional development

23. Creating an Action Plan Steps to be taken By whom? By when? Action status Comments

24. More on Creating a Plan Set goals and objectives Formulate strategies Convert goals into specific actions Monitor and evaluate actions

25. Planning overview Document objectives Document need Identify prospects Segment prospects Prepare plan for prospect groups Define appeal Set goals Build organization and technique Plan cultivation Implement plans Evaluate results

26. The Annual Fund Purpose is to raise funds for the operating budget on an annual basis Held yearly and low profile compared to other efforts Is the source of regular gifts Effort is staff-driven

27. The Annual Fund Ingredients for success: –A well-defined purpose –Extensive planning –Efficient organization –Realistic timetable –Realistic assignments –Logical order

28. Annual Fund Techniques Direct Mail Phone campaigns Matching gift programs Challenge gifts Gift clubs Anniversary giving

29. Sample Action Plan Calendar

30. Cost guidelines for solicitation activities Direct mail (acquisition) Direct mail (renewal) Membership Special events Donor clubs Corporations Foundations Special projects Capital campaigns Planned Giving $1.25-$1.50 per $1 raised $.25 per $1 raised $.30 per $1 raised $.50 per $1 raised $.30 per $1 raised $.20 per $1 raised $.10 to.20 per $1 raised $.05 to.10 per $1 raised $.10 to.20 per $1 raised

31. Performance Index Participants = # responding with gifts Income = Gross contributions Expense = Fund-raising costs % participation = participants ÷ total solicited Average gift = Income ÷ # participants Net income = Expenses ÷ # participants Cost per gift = Expenses ÷ # participants Cost of fund-raising = Expenses ÷ income received

32. Increased Levels of Involvement The Universe Newly Acquired Donor Renewed Donor Special Gift Donor Major Donor Donors of Planned Gifts Personal Solicitation Personal Solicitation, Phone Personal Mail, Phone, Personal Solicitation Mass Mail, Phone The Donor Pyramid

33. Who are your Prospects? Board members Current donors Volunteers Alumni/ae Staff leadership Event attendees Corporations Foundations Parents (current) Parents (past) Students

34. What makes a good “fund-raising Board member”? A natural relationship or interest in the institution Affluence or influence A willingness to contribute sacrificially Ability and willingness to communicate enthusiastically to others Willingness to be well-informed about the institution’s history, current operations and future goals A sense of urgency about the organization’s mission

35. The donor/friend giving cycle Identification Information Awareness Understanding Caring Involvement Commitment

36. Increased Levels of Involvement The Universe Newly Acquired Donor Renewed Donor Special Gift Donor Major Donor Donors of Planned & Ultimate Gifts Personal Solicitation Personal Solicitation, Phone Personal Mail, Phone, Personal Solicitation Mass Mail, Phone The Donor Pyramid

37. Why People Give They were asked! Emotional attachment Influence, professional advancement Peer approval Self esteem Recognition from peers Diminish negative feelings: guilt, fear, anger Tax and financial planning considerations

38. Cultivating relationships A major part of our role is cultivating friends for the cause we represent and encouraging and assisting them to contribute financially to it. In cultivating relationships, there are ethical principles that come into play -- honesty, integrity, fairness, caring and respect for others, keeping promises, and accountability. At the center of all these principles is trust.

39. Personal Qualities and Skill Sets of Successful Development Professionals

40. The Chief Advancement Officer Commitment to, involvement in, and a broad knowledge of institution Strong communication and leadership skills Strong organization and management skills Experience with and effective leadership of successful fund-raising methods Analyst and strategist Multi-tasker! Ability to build and maintain relationships with broad group of constituents

41. Personal Qualities of a Fund Raising Professional Creative Energetic Uses time and resources effectively Balances leadership and followership Commitment to education/institution Passionate about advancement Highly communicative Exudes and builds confidence

42. Trends in Advancement

43. Trends influencing philanthropy Technology –Computers/Internet Focus on individual –Information Globalization –Philanthropy –Education Economy New Generation of donors New work styles/ethic

44. Other forces at work which affect fund raising Changing support base –A "maturing" population –Increasing expendable dollars –Generational transfer of wealth –Women in philanthropy –Equity base is shifting to (and beyond) the "baby boomers” –Household-level prospect information –Improving technology, communications capacities –Changing marketing techniques

45. Fundraising is about relationships We are in the business of creating relationships –Cultural –Attitudinal –Value –External and internal What is important is the number of ways we communicate

46. What does this mean for Philanthropy? Increase in the Importance of Major Gifts –Gifts equaling one percent of the goal are increasing in campaigns. 90% of the goal from 10% of the donors (or 95% from 5%) –Mega-gifts changing nature of campaigns

47. Other trends in fund-raising and advancement –Increase in utilization of household, demographic and psychographic prospect information (and technology to access information) –Changing volunteer involvement / time –Use of technology for communication and solicitation –Virtual everything –Personalized everything!

48. The donor giving cycle Identification Information Awareness Understanding Caring Involvement Commitment

49. More trends –Larger campaigns –Continuous major gifts efforts –Gift restriction and direction of uses of funds –More frequent capital and “project” campaigns –Changes in purpose of capital campaigns –Change in marketing strategies for different generations –Expectations of staff / movement of staff

50. Setting Realistic Goals Previous year’s results Next year’s operating budget Project a reasonable increase (10%?) Establish a goal through a compromise between operating budget and the 10% factor, usually not less than the previous year

51. Development Assessment 3=Above average, 2=About Average, 1 = Below average Fund-raising environment –Capacity to compete with other organizations –Corporate gift potential within geographic area –Board and volunteer leadership support –Office space and equipment/data

52. Development Assessment 3=Above average, 2=About Average, 1 = Below average Donor Research –Availability of reference materials –Prospect gift evaluation procedures –Ability to retrieve donor gift data –Frequency of gift analysis reporting

53. Development Assessment 3=Above average, 2=About Average, 1 = Below average Fund-raising techniques –Effectiveness of board and volunteers in conducting face-to-face solicitation –Dollars raised by special events –Phonathon –Direct mail program

54. Development Assessment 3=Above average, 2=About Average, 1 = Below average Fund-raising tools –A case statement –Caliber of written proposals –Software and database –Materials to train volunteers

55. Development Assessment 3=Above average, 2=About Average, 1 = Below average Leadership –The access board members have to funding sources –The board’s understanding of fund-raising program –The board’s participation in soliciting gifts

56. Development Assessment 3=Above average, 2=About Average, 1 = Below average Staff –Development staff experience –Chief development offficer’s access to board and President –Extent to which development officers can learn at conferences!

57. Development Assessment 3=Above average, 2=About Average, 1 = Below average Planning –Frequency of review of results –Involvement of key leadership in planning –Budget allocation

58. Issues in stewardship and recognition Make sure donor’s gift is used for the purpose for which it was intended Be cautious about recognition/benefits –Renaming buildings –Donor desires related to named endowment/chair (no ownership!) –Gift crediting during campaign –Admissions decisions –Honorary degrees

59. Creating an Action Plan Steps to be taken By whom? By when? Action status Comments

60. More on Creating a Plan Set goals and objectives Formulate strategies Convert goals into specific actions Monitor and evaluate actions

61. What determines the size of a gift? The donor’s ability to give The donor’s perception that a gift can make a difference The effectiveness of the institution’s mission or project What others have given Who makes “the ask”