1. Sustainability Strategies for Non-Profit Organizations: Growth and Development Support Initiative Sustainability Strategies for Non-Profit Organizations: Growth and Development Support Initiative

2. Sponsored By: Michigan Department of Community Health, Mental Health, and Substance Abuse Administration, Bureau of Substance Abuse and Addiction Services A Briefing Intervention On Sustainability Strategies for Non-Profit Organizations: Development and Growth Support Initiative 11th Annual SUD Conference Larry P. Scott, Administrator Michigan Dept. of Community Health, Mental Health, and Substance Abuse Administration Bureau of Substance Abuse and Addiction Services Facilitator: Freddie John Martin, Ph.D. Senior Training and TA Consultant Sustainability Strategies for Non-Profit Organizations: Development and Growth Support Initiative Synergy Enterprises, Inc. Silver Spring, Maryland Sustainability Strategies for Non-Profit Organizations: Growth and Development Support Initiative Sustainability Strategies for Non-Profit Organizations: Growth and Development Support Initiative

3. 1)PROVIDE YOU WITH PIVOTAL INFORMATION ON SUSTAINABILITY STRATEGIES THAT YOU CAN USE NOW TO BEGIN YOUR THINKING ABOUT A REVENUE MIX THAT GENERATES UNRESTRICTED FUNDING AND REDUCES DEPENDABILITY ON ANY ONE TYPE OF FUNDING; 2)MOTIVATE YOU TO DEVELOP OR REVISE, AND IMPLEMENT A 2-YEAR INCOME OR REVENUE DIVERSIFICATION PLAN FOR YOUR VESTED ORGANIZATION; AND 3)STRESS THE IMPORTANCE OF ASSET MAPPING FOR REACHING OUT STRATEGICALLY AND EXPANDING YOUR PARTNERSHIPS WITH FOUNDATIONS, CORPORATIONS, GOVERNMENTS AND INDIVIDUALS. PURPOSE AND APPROACH PURPOSE AND APPROACH THE PURPOSE OF THE SUSTAINABILITY BRIEFING IS THREE-FOLD:

4. THE BRIEFING SESSION WILL UTILIZE A VARIETY OF APPROACHES TO INFORM, GUIDE AND ADVISE NON-PROFIT PARTICIPANTS. THE BRIEFING WILL BE VERY INTERACTIVE AND DISCUSSION- BASED. EXERCISES ON IMPLEMENTING AND MEASURING INDIVIDUAL DIVERSIFICATION REVENUE PLANS WILL BE USED TO EXPAND REVENUE AND GENERATE NEW PARTNERSHIPS. IT WILL INCLUDE A LECTURE AND INQUIRY APPROACH TO BRIEF AND MOTIVATE ACTIVE PARTICIPATION. THE BRIEFING SESSION WILL UTILIZE A VARIETY OF APPROACHES TO INFORM, GUIDE AND ADVISE NON-PROFIT PARTICIPANTS. THE BRIEFING WILL BE VERY INTERACTIVE AND DISCUSSION- BASED. EXERCISES ON IMPLEMENTING AND MEASURING INDIVIDUAL DIVERSIFICATION REVENUE PLANS WILL BE USED TO EXPAND REVENUE AND GENERATE NEW PARTNERSHIPS. IT WILL INCLUDE A LECTURE AND INQUIRY APPROACH TO BRIEF AND MOTIVATE ACTIVE PARTICIPATION. Brief Session Interactive and Discussion-Based Lecture and Inquiry PURPOSE AND APPROACH PURPOSE AND APPROACH THE APPROACH OF THE SUSTAINABILITY BRIEFING IS THREE-FOLD:

5. 1.Analyze Your Organization’s Historical Funding Mix; 2.Understand the Importance of Income Diversification to Long-Term Financial Sustainability; 3.Be Able to List the Traditional Types of Revenue Strategies and the Types and Kinds of Cash and Non-Cash Resources Available to Your Non-Profit Organization; 4.Understand Specific Information on Government, Foundation and Corporate Sources of Funding for Substance Abuse Programs and Services; 5.Understand the Relative Size and Difference between sources of Philanthropic Dollars in the United States; 6.Identify Five (5) New Funding Sources and Tools for ongoing Funding Support of Your Substance Abuse Programs and Services; 7.Learn the Importance of Conducting An Asset Mapping Campaign to Expand Your Revenue Base; 8.Use the Information Provided to Develop a Draft Copy of a 2-Year Income Diversification Strategy for Your Organization. LEARNING OBJECTIVES LEARNING OBJECTIVES

6. TYPES OF FUNDING AVAILABLE TO NON-PROFIT ORGANIZATIONS TYPES OF FUNDING AVAILABLE TO NON-PROFIT ORGANIZATIONS

7. FUNDING MIX EXERCISE: SOURCES OF REVENUE CHECKLIST Page 1

8. FUNDING MIX EXERCISE: SOURCES OF REVENUE CHECKLIST Page 2

9. FUNDING MIX EXERCISE: FUNDING MIX EXERCISE: SOURCES OF REVENUE CHECKLIST Page 3

10. Action Planning Grid

11. [THE DATA LISTED ON THE FACT SHEETS ARE COMPILED FROM 2006-2007 REPORTS FROM THE FOUNDATION CENTER, HIGHLIGHTS OF THE FOUNDATION YEARBOOK, 2007] YOUR SUSTAINABILITY MARKETS: 1. GOVERNMENT—FEDERAL ONLY  THE FEDERAL GOVERNMENT IS THE LARGEST SINGLE FUNDER OF NON-PROFIT PROGRAMS AND SERVICES;  FEDERAL GRANTS AWARDED ANNUALLY ARE MORE THAN ALL GRANTS TO NON- PROFITS BY FOUNDATIONS, CORPORATIONS, PLUS ALL CONTRIBUTIONS MADE BY  INDIVIDUALS TO ALL NON-PROFITS;  ABOUT 60 % OF ALL NON-PROFIT FUNDING COME FROM THE FEDERAL GOVERNMENT (IS THAT SURPRISING?);  IN TERMS OF BILLIONS, HOW MANY BILLION DID THE FEDS GIVE TO NON-PROFITS IN 2007? THE FACT SHEETS OF FUNDING

12. 2. INDIVIDUAL DONORS  INDIVIDUALS ARE THE SECOND LARGEST GIVERS TO NON-PROFIT ORGANIZATIONS;  INDIVIDUAL DONATIONS MADE UP ABOUT 30 % OF THE MONEY NON- PROFITS RECEIVED;  75-85% OF PRIVATE SECTOR GIVING COMES FROM INDIVIDUALS—MOST OF IT TO CHURCHES;  $22 BILLION WERE RECEIVED BY NON- PROFITS FROM BEQUESTS—MONIES WILLED TO A NONPROFIT ARE DESIGNATED WHILE INDIVIDUALS ARE ALIVE.  33% OF ALL NON-GOVERNMENTAL FUNDS WERE GIVEN AS GIFTS TO RELIGIOUS ORGANIZATIONS—96 BILLION DOLLARS MOSTLY BY INDIVIDUALS;  80% OF INDIVIDUALS ITEMIZE THEIR CHARTIABLE GIFTS VIA TAX DEDUCTIONS FOR FEDERAL INCOME TAX THE FACT SHEETS OF FUNDING

13.  DONATIONS FROM FOUNDATIONS, CORPORATIONS AND BEQUESTS MAKE UP 10 % OF NON-PROFIT FUNDING;  THERE ARE APPROXIMATELY 72, 477 FOUNDATIONS AND THEY GAVE NEARLY 40 BILLION OR ROUGHLY 12 % OF THE TOTAL NON-GOVERNMENT FUNDING TO NON-PROFITS;  BY LAW FOUNDATIONS MUST GIVE AWAY 5% OF THEIR ENDOWNMENTS. EACH YEAR. THIS MEANS A FOUNDATION’S ASSETS MUST BE AT LEAST 5 % IN INTEREST OR THE FOUNDATION WILL HAVE TO DIP INTO ITS ENDOWMENT TO MEET THIS “IRS RULE”; FOUNDATIONS FOUNDATIONS

14.  FOUNDATION GIVING BY CATEGORY WAS $16.2 BILLION (42%) BY FAMILY, $11.3 BILLION (29%) BY INDEPENDENT, $4.1 BILLION (11%) BY CORPORATE FOUNDATIONS, $3.9 BILLION (10%) BY OPERATING AND $3.6 BILLION (9 %) BY COMMUNITY FOUNDATIONS;  MOST NON-PROFITS APPLY ONLY TO INDEPENDENT FOUNDATIONS; WHY? BECAUSE THEY ARE EASIER TO IDENTIFY;  THE VAST MAJORITY OF FOUNDATIONS HAVE NO STAFF; STAFF FOUNDATIONS TEND TO BE MORE RESPONSIVE TO GRANT  PROPOSALS FROM NON-PROFITS;  1.5 MILLION NON-PROFITS ARE ESTIMATED IN THE UNITED STATES AND ABOUT 72,000 ARE GRANTMAKING FOUNDATIONS;  FOUNDATIONS TEND TO BE CLUSTERED IN THE EAST AND WEST COASTS OF THE UNITED STATES;  NEW YORK 16%  CALIFORNIA 12%  NEW JERSEY 9%  TEXAS 5%  WASHINGTON 5% FOUNDATIONS FOUNDATIONS

15. 1.AVENTIS PHARMACEUTICAL HEALTH CARE FOUNDATION (NJ) 2.THE BANK OF AMERICA CHARITABLE FOUNDATION, INC. (NJ) 3.WAL-MART FOUNDATION (AR) 4.GE FOUNDATION (CT) 5.THE J.P. MORGAN CHASE FOUNDATION (NY) 6.CITI FOUNDATION (NY) 7.THE WACHOVIA FOUNDATION, INC. (NC) 8.WELLS FARGO FOUNDATION (CA) 9.EXXON MOBIL FOUNDATION (TX) 10.VERIZON FOUNDATION (NJ) CORPORATIONS CORPORATIONS

16.  FEES FOR SERVICE  RELATED BUSINESS INCOME  PRODUCT SALES (I.E., SALE OF COOKIES, CHICKENS AND TICKETS TO EVENTS)  DONATIONS FROM BOARD MEMBERS  REAL ESTATE, RENTAL PROPERTY AND HOLDINGS  PUBLICATIONS  TRAINING AND TECHNICAL ASSISTANCE  FUNDRAISING ACTIVITIES (I.E., ANNUAL APPEALS, ANNUAL, SPECIAL EVENTS & DINNERS)  TELEMARKETING CAMPAIGNS EARNED INCOME

17.  VEHICLES, SPACE AND DINNERS  COMPUTERS, EQUIPMENT & OFFICE FURNISHINGS  PROPERTY, LAND, ART AND INSURANCE POLICIES  LABOR AND SERVICES  MEDICATION/HIV TEST KITS  INCENTIVES/GIFT CARDS AND MONEY  PRINTING AND PUBLICITY  FOOD AND BEVERAGES DONATED GOODS AND SERVICES

18.  SILENT AUCTIONS  DINNERS  GOLF TOURNAMENTS  WALK-A-THONS  RAFFLES  GARAGE AND YARD SALES  FESTIVALS/BOOTHS  WEB/E-MAIL CAMPAIGNS  MAIL CAMPAIGNS  TELEMARKETING CAMPAIGNS BOARD SUPPORTIVE SPECIAL EVENTS: A POTPOURI OF FUNDRAISING ACTIVITIES

19. Administrator: Larry P. Scott, Michigan Dept. of Community Health, Mental Health, Substance Abuse, Bureau of Substance Abuse And Addiction Services And The Knopf Company, Ashley Knopf Facilitator: Freddie John Martin, Ph.D. Senior Training and TA Consultant, Non-Profit Capacity Building Topic: Sustainability Strategies: Development and Growth Support Initiative For Use Also By the Michigan Institute for Prevention and Treatment Education Sustainability Strategies for Non-Profit Organizations: Development and Growth Support Initiative Sustainability Strategies for Non-Profit Organizations: Development and Growth Support Initiative