Building on a Rock

1. Building on a Rock Meeting the Challenges of a Changing Economic Environment

2. The Current Economic Crisis • Bay Area Non-Profits Brace for 2010 Armageddon • 65% of 25,000 Non-Profits Report Declines • 39% of Leading Foundations Will Give Less • 1.4 Million Registered Non-Profits in US • 20% Could be Lost in the Next 12-18 Months (280,000)

3. The Good News • Donors are still giving • Donors are more aware • Donors are more discerning

4. The Bad News • Donors are giving less • Donors are more demanding (ROI) • Donors are requiring greater accountability • Donors are looking much more like investors

5. Matthew 7:24-27 “Who ever hears these sayings of mine, and does them, is like a wise man who built a house upon a rock. And the rain descended, the floods came, and the winds blew, and beat upon that house and it did not fall because it was built on a rock!

6. “And whoever hears what I say and doesn’t do them is like a foolish man who built his house on the sand. And the rain descended, and the floods came, and the winds blew, and beat upon that house and it fell: and great was the fall of it.”

7. Two Houses • When the Storm of Change Occurs • Many Fall

8. And Few Remain!

9. Building a Foundation 10 Things To Focus On In Raising Money in Challenging Times

10. 1. Focus on Rational Giving • Rational Giving • They Know Your Mission • They Believe in Your Mission • They Have Confidence In You • Only Rational Giving Is Sustainable • Rational Giving Strengthens Infrastructure • Increasing Capital Potential

11. A Great Analogy • Falling in love • The steps • The initial exposure • The first date • The second date • Additional commitments • The BIG commitment • Life together

12. 2. Focus on Leading Indicators • The Indicators • The Size of Your Database • Average Annual Real Support • Average Annual Real Donors • Average Annual Core Donors • Average Annual Major Donors • Average Annual Mega Donors • Strive for 10% Increases

13. The Strategic Planning Matrix

14. 3. Focus on Giving Charts

15. 4. Focus on Cultivation • Not Everyone the Same • A, B, C, D Prospects • A.I.D. Acronym • Cultivation and Predictability • The Best Idea Ever

16. 5. Focus on Bridging • There are inexhaustible resources in your Sea of Prospects. • Impacting them will require action: • The Entry Level Opportunity • The Bridge • Conversion • Rules regarding bridges • Provide a number of them • Keep the Threshold Low

17. Two Wrong Assumptions • Everyone “Gets It” • Everybody is going to expend the energy to try to figure out how to deal with what you just told them! • Provide ways in which people can be involved in your work, always providing several “low threshold” opportunities to which they can say yes.

18. 6. Focus on Destination • 4 Characteristics of Successful Non-Profits • Mission • Vision • Strategic Plan • Development Plan • Plans Build Confidence • Accomplishment Leads to Success

19. The Success Characteristics Vision=Mission Accomplished Strategic Plan Development Plan Mission

20. 7. Focus on the Subjective Factor • Get a handle on the subjective • The Attitude Continuum Euphoria Cynicism

21. Two Things To Remember • Where anyone is on the attitude continuum reflects their perception of your ability to do what you say you’re going to do • Where anyone is on the attitude continuum, you’ve placed them there

22. 8. Focus on Endowment • What Is An Endowment? • How To Build One • Campaign • A Percentage of Gift Income • A Percentage of All Income

23. 9. Focus on Building Credibility • Two Ways We Earn Credibility • Earn It • Borrow It • Advisory Boards • Task Forces • Honorary Chairs • It’s Not What You Know; It’s Who You Know!

24. 10. Focus on Accountability and ROI • The New Realities • The New Rules • The Annual Report