nysca dec fund dvlpment[1]
DESCRIPTION
TRANSCRIPT
Community Focus w Statewide Impact w National Network
Fund Development forDEC Coordinators
Exploring Fundraising and Resource Generation
Key Learning Objectives
• Role of fund development for organizations and DEC grantees
• Learn the various fund & resource development responsibilities
• Learn the components of a development plan & how to formulate & implement strategies
• Explore strategies for communicating your impact
The Need for Resources and Support
• Economic Downturn• Competition for funding• DEC grants and overall project costs• Understanding and Implementing Fund
Development
Fund Development Responsibilities
• Accountability• Ethical Principles• Oversight• Participation
Accountability
• Awareness & compliance with the intent of federal, state & local laws regulating charitable solicitation– Attorney General’s Office– IRS– Other
• Establish & exercise adequate controls over fundraising activities
• Accuracy, integrity & accountability in all solicitation activities, materials, representations, etc.
Ethical Principles
• Motivated by mission, merits & resource needs
• Respect for the privacy of donors
• Administrative & fundraising expenses should be fair, reasonable, documented & disclosed (reported on IRS Form 990)
Oversight
• Establish an appropriate governance structure• Ensure development efforts meet the
budgetary needs• Ensure resources are available to maximize
returns• Develop a development plan
Participation
• Personal contribution• Involvement• Identifying and cultivating resources• Government relations• Solicitation
Who’s on First?The Development Committee
• Prepares Development Plan• Models and encourages involvement in
implementation• Monitors and reports progress• Evaluates efforts • Revises plan
Why have a Plan?
• Challenges & replaces magical or wishful thinking
• Coordinates people, fund raising & marketing efforts with the organizational strategic plan
• Gets “buy-in” from participants regarding:– Goals– Roles– Priorities– Accountability
Why have a Plan? (cont’d)
• Helps to pace your annual efforts• Great orientation tool for partners, volunteers,
Board and staff• Creates understanding of everyone’s fund
raising roles & responsibilities• Is outcome-based & measurable which helps
you learn & measure your success
Strategic Questions to Ask
• What are the real needs for the projector organization?
• What are we raising money for?• Would funds raised effect existing funding streams?• Where have the resources come from in the past?• What are our funding trends?• Are the funding streams diversified?• What would be the impact of a funding cut from any
source?• What are we good at?
What is a Development Plan?(or…taking the gamble out of fund development)
A detailed plan that describes how you intend to secure donated resources. It includes:
• The case for support • Fund Development environmental analysis• Goals & Objectives• Strategies• Human resource needs• Budget• Timelines • Accountability• Evaluation
Developing Your Case for Support
• What do you need money for?• How much do you need?• Why would someone want to contribute?
– Benefits to participants or audience– Benefits to the donor– Benefits to the community
Analysis of Fund Development Environment
External Environment (Opportunities & Threats)• Competitors• Community awareness & relationships• Perceptions of activities (quality & need)• Economy
Analysis of Your Fund Development Environment (cont’d)
Internal Environment (Strengths & Weaknesses)• Evaluation of previous efforts• Staffing capacity & support • Financial management infrastructure & technology• Fundraising software• Budget available for development efforts• Volunteers’ commitment to fundraising• Marketing materials
Identify Your Fundraising Strategies
• On-line activity• Special events• Direct mail• Radio, television or print ads• Phone-a-thons • Face-to-face solicitation• Other?
Each Strategy Serves a Purpose
While it may not offer the greatest immediatefinancial return, it may:
• Establish credibility• Generate positive public exposure for organization and
increase public awareness• Reach out to potential new donors• “Set the table” for future gifts• Involve new volunteers--your best ambassadors in the
community• Raise the profile of your cause or mission
Develop a Master Budget
• It takes money to raise money, but how much can you afford?
• Remember that time is money - if it takes time, there is a cost
• Even volunteer-driven fund raising efforts require adequate staffing, space & technology to support volunteers
• Remember to include all costs (direct or hidden):– Staff time– Space and technology needs– Marketing & advertising
So How Did We Do?
Evaluating the Plan• Review & fine-tune the plan annually• Were costs reasonable compared to income?• Were targets & outcomes realistic?• Consider the non-financial benefits of each effort• Are you moving toward your long-term goals?
Who Receives the Money?
Source: Giving USA 2010
Why Focus on the Individual?
• Source of 75% of charitable contributions• Need for unrestricted dollars• Reduced funding from government and foundations• Builds a broad-based support • Requires Board involvement and Builds LOCAL
support
Key Concepts in Fund Raising
• Development is the process of building relationships
• Fund-raising is setting up opportunities to actually ask for money
• 80% of the money you raise will come from 20% of the donors
• Lower income people give a greater percentage of their income than wealthier donors
• The #1 reason people don’t give is because no one asked!
20% Donors, 80%
$80% Donors, 20% $
Success Rate of Fund Raising Activities Based on Ratio of Time Invested to Financial Return
Personal face to face ask by a known peer 50%
Personal phone call by a known peer30%
Personal letter by a known peer15%(on their stationery)
Phone-a-thon (by a volunteer or paid caller)10%
Direct Mail 1-5%
Special Events Least Effective
2009 Online Giving Update…
The average online gift in
2009 was $144.72.
That represents a 5% decline
from 2008, but remains
significantly higher than
other fundraising
channels.
Messages that Connect
• Is it right for your audience?• Keep it Simple• Make it memorable• Unexpected• Concrete• Emotional, tapping into positive or negative feelings
Change Your Message…
Your Message Doesn’t Have to Be…
1. Telling2. A Mission Statement3. Three paragraphs Long4. An “About Us” Page 5. Expensive
Why Me?Why Now?What For?
“I love saving you money.”
(I know what you want)
The “New” Cultivation Process…
Stop being a not-for-profit.Why do we define our selves in the negative? It makes no sense.
Does your organization exist to ‘not make any money?’
Or, does it exist to save lives, change lives and
impact lives.
Connection to Impact Drives Potential for Income.
Source: www.forimpact.org
Cultivate Plants… Relate to People…
• Old: The higher the ask the longer the “cultivation period.” New: The bigger connection to impact the better the
partnership
• Old: Major gifts are infrequently asked for or given and require a personalized cultivation plan and solicitation.
New: Partnership opportunities are presented when good partners present themselves. Both parties bring value to the table and help each other reach their goals.
• Old: Nonprofit “charities” ask for donations. Giving is the ‘right thing to do.’
New: Nonprofit businesses provide opportunities to invest in your community, and see the return for the people, region, cause you care about.
Remember Why People Give
• Share goals the organization pursues• Personal connections with staff, board, clients or
volunteers• Personal gratitude toward the organization• Involvement in the life of the organization• Enlightened self-interest• Being asked• Joy
Case Study In Making It Simple: “In A Nutshell”
What? Why? How?Support Build Stronger
NonprofitsComprehensive Services
Plan Community Engagement
Collaboration
Advocate Give Voice to All Education & Lobbying
“The Soap Box and Toolbox for New York’s Nonprofits.”
What’s Your ‘Impact Statement’?
Impact Statement
WHAT WHY HOW
Best Practice Summary
• Choose your fundraising methods strategically• Build organizational capacity and infrastructure• People give to other people - establishing relationships are
key• People give because of self-interest - know what motivates
your donors• You are asking for investments and partners, not charity
and prospects• Developing a compelling message is critical• Money follows people - get prospects involved• Few people give without being asked
Added Ideas, Comments, Questions???