1. Fundraising I: Tried & True Keys to Success 6 th Annual Club MAC June 15, 2006 Carole V. Rylander, CFRE rylander associates 214.348.9086 carole@rylander-tx.com

2. 2 Keys to Fundraising Success  Organizational Readiness  Adopting a Marketing Mentality  Creating a Compelling Case for Support  Establishing Benchmarks & Measuring Performance

3. 3 Begin with the end in mind. -- Stephen Covey

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6. 6 Fundraising Essentials  A Good Cause (what will change)  A Natural Constituency (who cares)  A Time Frame or Deadline (urgency)  A Dollar Goal (how much is needed to create the change)  ?

7. 7 Critical Concepts  Synergy  Keys  Planning  Systems  Funds Development is a process, not simply an activity  Relationships & Matching

8. 8 Key #1: Strategic Planning Vision Mission Strategic or Long Range Plan Goals and Objectives

9. 9 Fundraising Follows the Planning Process! Fundraising & Operating Action Plans Strategies and Tactics Budget Case Statements

10. 10 Mission, Vision, & Strategic Planning  A primary responsibility of the Board  Verifies the relevance of the organization to the community  Staff is involved, especially with action planning  The process of creating the plan is as important as the outcome

11. 11 Key #2: Adopting a Marketing Mentality  Constituency Mapping  Jargon  Five Steps to Marketing

12. 12 Constituency Mapping  Theory of Concentric Circles  Importance:  Divides a Large, Diverse Constituency Base Into “Like- Minded” Groups  Identifies Each Group’s Level of Involvement

13. 13 Constituency Mapping  Importance (cont.):  Acknowledges Each Group’s Differing Perspective and Language  Enables the Delivery of Focused Messages Designed to Stimulate a Specific Response

14. 14 Constituency Mapping  Importance (cont.):  Ensures that Resources and Efforts are Directed Towards Groups Appropriately - According to the Value of their Response  Constituency Mapping Exercise

15. 15 Constituency Mapping Step 1Identify all “like-minded” groups in your organization’s universe

16. 16 Constituency Mapping Like-minded groups are not just “individuals,” but groups of individuals who :  Have the same relationship to the organization,  Use the same language, such as physicians, teachers, city council members, or  Interact with your organization in the same way

17. 17 Constituency Mapping  With financial resources  Who provide earned income (fees, tickets, etc.)  With whom your organization partners (a non-financial, strategic relationship) Step 2Using three different colors, circle constituents:

18. 18 Constituency Mapping  Some constituents will have all 3 colors of circles. Step 3Create a legend so you’ll know what your colors mean.

19. 19 Jargon  Definitions:  The technical terminology or characteristic idiom of a special activity or group

20. 20 Jargon  Definitions: (cont.)  Obscure & often pretentious language marked by circumlocutions and long words  A confused unintelligible language

21. 21 What Jargon Do You Use?  Identify Jargon:  Create a List  Review Your Document(s) & Circle Jargon  Redefine Jargon  In Every Day Words  “Grandmother” Principle

22. 22 Marketing  Marketing is all about exchanges.  Marketing is a process that helps you exchange something of value for something you need.

23. 23 Selling vs. Marketing  SELLING MENTALITY is Rooted INSIDE the Organization

24. 24 Selling vs. Marketing (cont.)  MARKETING MENTALITY is Based OUTSIDE the Organization—In the Marketplace

25. 25 Marketing: Step One  LISTEN to your Constituency!

26. 26 Marketing: Step Two  SEGMENT Your Market

27. 27 Marketing: Step Three  STRATEGICALLY TARGET Those Segments with the Highest Potential

28. 28 Marketing: Step Four  POSITION the organization:  What does it do well that matters?  How does it compare to what other organizations do?  How does it distinguish itself?

29. 29 Marketing: Step Five  COMMUNICATE the Special OPPORTUNITIES your Program Presents in Terms That Matter to the Target Groups

30. 30 Marketing: per Peter Drucker “The aim of marketing is to know and understand the customer so well that the product or service fits them and sells itself.”

31. 31 A: By creating an urgent and compelling Case for Support! Q: So, how do I develop effective marketing messages that motivate potential donors to action?

32. 32 Key #3: Creating a Compelling Case for Suppot  Definition: A carefully prepared document that sets forth, in detail, the reasons why an organization needs-- and merits-- financial support...

33. 33 Case Statement: Definition...In the context of the “case is bigger than the institution,” it documents [the organization’s] services, human resources, potential for greater services, current needs, and future plans. –From Glossary of Fund Raising Terms, a publication of AFP

34. 34 What We Hear All The Time… vs. A Compelling Story!

35. 35 There is no perception unless there is contrast. –Ralph Coverdale in Risk Thinking

36. 36 The Case Statement Is.....  An internal document  An investment prospectus  Prepared by the development office  The basis for all marketing, communications, program, & development materials

37. 37 The Case Statement Is... (cont.)  Both rational and emotional  Optimistic  Brief  Easy to interpret and remember  Larger than the institution and has broad appeal

38. 38 The Case Statement Is... (cont.)  The single most important document in the fundraising effort!

39. 39 Elements of the Case for Support 1. What is the organization’s mission? 2.What has the organization accomplished thus far? (its history) 3.What does the organization do and how is it structurally governed?

40. 40 Elements of the Case for Support (cont.) 4.What is unique about your organization or proposed project? 5.What is the problem? What need does the program for which you are seeking support address?

41. 41 Elements of the Case for Support (cont.) 6.Who is affected? 7.What solutions does the program offer? 8.What methods will the program offer? 9.What results have been achieved thus far?

42. 42 Elements of the Case for Support (cont.) 10.What resources and funds are required and how will they be used? 11.What endorsements and support have already been provided for the program? How much? From whom? 12.What is in it for the donor?

43. 43 Giving Opportunities (What’s In It for the Donor?)  Are drawn from the Case Statement  Can Represent a wide range of appealing fundable Items - $50 to $25,000+  Fulfill Baby Boomers’ needs to know their gift provided specific tangible benefits

44. 44 Case Preparation  Written by one person  New rationales will emerge during process  Adaptable to many uses & formats  First draft—then edit, edit, edit

45. 45 Case Preparation (cont.)  Circulate draft  Adopt as a policy document  Update periodically  Use it with staff and volunteers  Create case statements for each program area

46. 46 Uses of the Case Statement  Provides common language for board members  Is the basis of proposals & brochures, as well as program & campaign materials  Assists in leadership & volunteer recruitment

47. 47 In Summary, A Case Statement  Is designed to:  Substantiate an organization’s opportunities and attributes,  Define benefits to the contributor, AND…  Stimulate a monetary response!

48. 48 In Summary, a Case Statement Is A Must: The relationship between programs, needs, and benefits to donors must be communicated in a persuasive “case” that motivates the potential donor to action!

49. 49 Case Statement Handouts  Elements of the Case for Support  Samples:  The Case for the Building Program of Los Barrios Unidos Community Clinic  Los Barrios Unidos letter proposal  The Case for the Anita N. Martinez Ballet Folklorico

50. 50 Key #4: Measuring Program Performance  Provides evidence of impact  Justifies the organization’s value  Directly links gifts to impact  Strengthens relationships with funders  Is essential for renewing gifts

51. 51 Program Performance Metrics  Handout:  Star/AmeriCorps Evaluation Plan

52. 52 To Learn More...  Association of Fundraising Professionals (AFP)  25,000+ members mostly in the US, Canada & Mexico  Web Site: www.afpnet.org  International Conference attended by 4,000+ in spring of each year  Dallas Chapter = 300 members

53. 53 To Learn More...  Center for Nonprofit Management  Local organization whose mission is to increase the capacity of nonprofit organizations to serve the community  Web site: www.cnmdallas.org

54. 54 To Learn More...  BoardSource:  is a 501(c)3 nonprofit organziation dedicated to improving the effectiveness of nonprofit organizations by strengthening their boards of directors.  www.boardsource.org  Individual membership = $139 year

55. 55 Thank you!