I need a fundraiser now!September 10, 2010

MDW Consulting:Comprehensive development services for nonprofits.

Introductions

o What you would like to learn?o What are your questions about hiring a

fundraiser?o What’s your own experience with fundraising?

What we will cover?

o Overview of Philanthropy Today Where does funding come from? How does an organization fundraise?

o Portfolio View of Revenue o Volunteer and Staff Roles in Fundraisingo Planningo Case Study

Sources of Philanthropy

o Americans gave $307.75 billion in 2009. Total giving, when

adjusted for inflation, was down 5.7%, the largest drop since

tracking began. Giving still totaled $307 billion!

o Individual giving is 75% of total giving not including bequests.

o Corporate giving increased 5.5% in 2009 to $14.1 billion.

accounting for 4 percent of all charitable giving.

o Foundations represent only 13% of giving or $38 billion - down

8.9%.

Divide & Conquer

o Divide your fundraising efforts using a mix of tools: Giving pyramid Philanthropic Sectors Cultivation continuum Stages of Board Development

o Identify areas for further growtho Create actionable and realistic framework for

that areao Given that framework, what is the best staffing

choice?

Analysis

o What is your organization’s current revenue mix?o How do you compare with peer organizations?o What has been it’s traditional strengths?o How active are the Board and volunteers in

fundraising?o How did a previous experience turn out with

fundraising staff or consultant?

Align with Mission

o Is the organization planning a major capital expansion in the future?

o What can it do to build on current management and/or Board strengths?

o How does fundraising and events enhance or detract from your mission?

Donor Pyramid

Planned Gifts

Capital Donor

Project Donor Renewed Donor

Newly Acquired Donor

Patrons & Board Contacts

Planned Giving

Capital Campaigns

Annual Fund

Personal Solicitation

Phone Solicitation

Mass Solicitation• Special Events

• Direct Mail

Prospect Migration

Capacity

InitialRelationship

Education Solicitation

Gift

Campaign Gifts

Amount Raised

Cost

Donor

Direct Mail Acquisition:Low revenue comprised of many small

gifts.

Renewals, Phonathons:

Many donors, slight increase in gift

sizes.

Upgraded Gifts:

Selected donors

upgrade gift sizes through one-on-one

contact.

Major Gifts:Gift size increases; cultivation time

increases; number of donors decreases

Campaign Gifts:Very few donors, very large gifts

Comparative Costs and Returns of Interdependent Fundraising Methods

Stages of Building a Philanthropic Board

“Giving is important.”

“I will give.”

“I will give again (annually).”

“I will be an ambassador…I will advocate the organization to others.”

“I will ask others to give.”

“I will ask others to become involved.”

Ambassador

Donor

Advocate

Volunteer

Analysis Plan Implement Evaluate

Ideal for Consultan

t

Ideal for Staff

Ideal for Consultan

t

Planning Stages

Consultant Outsource Staff

Campaign Study

Campaign Counsel

Evaluation

Grant Writing

Interim Staffing

Analysis & Planning

Ongoing Board Development

Donor Cultivation

Gift Acknowledgement

Corporate/Foundation Relations

Small Events & Appeals

Direct Mail

Telemarketing

Galas

Fundraising Tactics

Board and Staff Relationship

Staff:TransactionalFundraising

Board:RelationshipFundraising

Cost Estimates by Activity

Cost Spectrum

High ($1.50)

Medium

Low ($.12)

Acquisition MailingsSpecial EventsTelemarketing

Direct Mail (Existing Donors) Sponsorships

Planned GivingMajor Gifts

Capital Campaigns

Cost Estimates by Staffing ModelChief Development Officer

Category Median SalaryBenefits (25%)Total

CompensationStaff Size 1-3 $60,000 $15,000 $75,000Location North Central U.S. $65,000 $16,250 $81,250Experience < 4 years $55,000 $13,750 $68,750Metro Area > 3 million $85,000 $21,250 $106,250Sector Religion $50,000 $12,500 $62,500

Social Service $57,000 $14,250 $71,250Education $63,500 $15,875 $79,375Arts/Culture $61,500 $15,375 $76,875

Source: 2009 AFP Compensation and Benefits Study

Consultant Hourly

Monthly Investment (5 Hours a Week)

Grant Writer $75-$90 $1,500Independent Consultant $125 $2,500Consulting Firm Varies $5,000 - $7,500

Case Studyo Break-up into groups of 4-5.o Discuss the case for 15 minutes.o Select leader to present your ideas. o Questions:

• How would you analyze the situation?• Would you hire a full-time fundraiser? If so, when?• How realistic are the financial goals?• What would you focus on?

Free Initial Consultation

Receive a no-cost 45-minute consultation on any aspect of development - from capital campaigns to staffing.

Learn how you can overcome obstacles and improve your fundraising performance. This offer is transferable so feel free to forward it to a colleague.

Thank you!