Fund and Resource Development

1. Fund and Resource Development Generating income & resources to support your organization’s programs Presented by Chiquita T. Tuttle, MBA May 7-8 2009 2nd Utah AIDS Institute Calvary Baptist Church 1090 South State St. Salt Lake City, Utah

2. Learning Objectives • To learn techniques for acquiring new donors to broaden your base of support • To discuss additional types of resources for organizational success • To examine giving patterns by sector

3. Learning Objectives (con’t) • To understand the Donor Pyramid • To identify and become aware of Fundraising Mistakes • To have tangible tools to use at your workplace

4. Outcomes • Participants will be able to understand and learn how to develop a fund raising and development plan for a non-profit organization through four steps: design, development, execution and evaluation. • Participants will recognize the difference between grant writing and fund raising. • Also, participants will learn how to assess the fund raising needs of the organization.

5. Who is today's Audience? • Introduction of participants • Name, agency, area of responsibility • Your role in development • Your organizational challenges • Your expectations/ take away

6. Fundamentals • Fundraising is a specific skill • Requires planning • Is strategic • Is difficult in these economic times • Requires strong relationship skills • Demands communication • Highly accountable

7. Culture Shift • Shifting from “Reacting” to “Acting” • Change organization language from • We hope to …….. to • We intend to

8. 10 REASONS WHY PEOPLE GIVE • 1. They have a deep and sincere belief in the organization and its purposes. • 2. They believe that the current needs of the organization are important, both personally and for the sake of the community. • 3. They have a sense of loyalty, gratitude, and affection toward the organization. These donors could be current or former clients, staff members, board members, or the families of any of these.

9. 10 REASONS WHY PEOPLE GIVE (con’t) • 4. They have a friendship with and respect for those who solicit them and by donating to the organization, they show support for their friends. • 5. They want to thank and honor the organization for past services and/or honor staff and volunteers who work/have worked at the organization. • 6. They want to ensure the organization can continue to fulfill its mission and that services continue for the future good of the community.

10. 10 REASONS WHY PEOPLE GIVE (con’t) • 7. They appreciate the peer involvement they have cultivated through board and volunteer activities. • 8. They are aware of the tax benefits of charitable giving and want to maximize their tax considerations. • 9. They want to be recognized as a supported of the organization or have a loved one publicly recognized. • 10. Because they feel that here and now, supporting this particular organization is the right thing to do.

11. Engagement Continuum DONOR $ Invest Involve Interest Inform $ Invite Identify TIME

12. Engagement Continuum • Identify • Invite • Inform • Interest • Involve • Invest • RESULTS = DONOR = INSPIRED

13. Donor & Constituency Segments • Current/former clients, patients, alumni • Corporations/vendors • Foundations • Local Businesses, former businesses • Community Leaders • Civic Organizations • Extended Families of clients/patients/alumni • Churches/current or former staff

14. Solicitation Techniques • Personal, face to face, Telephone • Personalized letter • Impersonal: Direct Mail; telemarketing • Special Events • Door–to-Door • Media

15. Planned Gifts Capital Donor Special Gifts Donor Renewed Donor Newly Acquired Donor The Universe The Donor Pyramid

16. What About the Donor ? • See the world from the donor’s point of view • Give the donor consistent, excellent attention and information • Seek donor loyalty • Speak to the Listening

17. What About the Customer/Donor ? • People feel they can make a difference by aligning themselves with a charitable cause, and they want to feel better for having done so. Money, time, or other gifts donated are only a tool to help donors feel better.

18. Donor Cultivation & Recognition • Reaching out to donors and potential donors is easier than you think • Success can be as simple as giving people what they want, but with a little more than they EXPECT! • Challenges and obstacles inspire us to do our best and to excel at outstanding donor relations

19. Five Things One Board Member Can Do to Raise $100 to $5,000 • Make a personal contribution. • Hand write a short note to the board president explaining why you are making the contribution, and give the check and note to him or her as you leave the board meeting.

20. Five Things One Board Member Can Do to Raise $100 to $5,000 (con’t) • Write a letter and send it to ten friends and relatives. In the letter, explain why you volunteer your time at the agency. • Ask them to consider making a contribution to the organization, and let them know they can send the check to you or directly to the organization. (If you send out a holiday letter, you can include this in your letter.)

21. Five Things One Board Member Can Do to Raise $100 to $5,000 (con’t) • Together with two or three other board members, pledge significant gifts. Then write a letter to the rest of the board showing your collective commitment

22. Five Things One Board Member Can Do to Raise $100 to $5,000 (con’t) • Host a dessert party in your home or business and invite twenty friends and relatives. On the invitation say that they will learn about the organization, be asked but not pressured to make a contribution, and enjoy a great dessert. Hold the party on a weeknight around 7 pm

23. Five Things One Board Member Can Do to Raise $100 to $5,000 (con’t) • Volunteer to match the contributions from other board members. Tell the board that you will match, dollar-for-dollar, every contribution from a board member before December 31, up to a specified total.

24. 2008 Foundation Giving Source: Foundation Center, April 2008

25. Words you need to know

26. Glossary of Terms • Case – Prepared reasons why a charitable institution merits support including its potential for greater service, its needs, and its future plans

27. Glossary of Terms • Cultivation - the process of promoting or encouraging interest, and or involvement on the part of a potential donor or volunteer leader, an education process to inform about an institutions reason why it merits support

28. Glossary of Terms • Donor Profile - a description of basis information about an individual donor through research

29. Glossary of Terms • Engagement Continuum – a continuum of involvement over time that yields great financial support from a donor

30. Glossary of Terms • Major Gift: a gift of significant amount which may be repeated periodically

31. Glossary of Terms • Prospect- any logical source of support, whether individual, corporation, organization, government at all levels or foundation

32. Glossary of Terms • Constituency – All people who have in some fashion been involved with the institution seeking support

33. The Development Plan • A good development Plan can move an organization from putting out fires and going from one crisis to the next to… • Creating a positive flowing work plan in which all participants have the opportunity to do their best, be their best and achieve their best.

34. A Plan is a Working Document • Commit from the beginning of your development plan to frequently assess and adjust --

35. Four Steps of the plan • Design • Development • Execution • Evaluation

36. Fundraising: Steps for a Successful Development Plan • If you don’t know where you’re going, how are you gonna’ know when you get there? –Yogi Berra • When you are ready to start fund raising, start with a development plan. A plan not only tells you where you are going, but also tells you how you will get there. It also lets you mark your progress and make changes along the way. • Patrick O'Heffernan , Social Edge, A program of the Skoll Foundation

37. Set Objectives • Start planning one or two months before your fiscal year begins. • Set precise objectives: • How much you are planning to raise in the next year, in each category of support – • Unrestricted/restricted funding, program grants, in-kind support. • Long term pledges to help you accomplish your mission. • Capital campaign.

38. Prospect / Rating / Amount--Design-- • Next take a piece of paper (or a spreadsheet) and make 3 columns labeled: “prospect,” “rating,” and “amount.” • “Prospects” are those people and organizations you plan to raise money from – development banks, foundations, individuals, etc. • “Rating” is your confidence in their giving. • “Amount” is how much you plan to ask for, based on what you think they are capable of giving. • Compare your prospects to your objectives -- chances are they will not match. You may have too few prospects, or the wrong kind and you will have to either adjust your objectives or expand your prospect list.

39. Prioritize • Now decide on a strategy using these prospects that will come closest to your goals. • It could be led by renewals of existing foundation grants, or applications for regional development funds or private donors, or online and email campaigns. • Use the list you made of prospects and their ratings to set priorities.

40. Timing • Then draw a monthly action calendar for the year to implement that strategy. • Use a large piece of paper making sure you indicate holidays and celebrations that occur in each month like Cinco de Mayo, Black History month, ethnic holidays, Purim, Christmas, Buddha’s birthday, The Festival of the Moon, local celebrations and heavy vacation months. • This insures that you do not schedule events when prospects are not available.

41. Calendar --Execute -- • Next list the actions needed to meet, recruit, and ask each prospect, and post them into the appropriate months. • In the case of foundations and development banks, write in the month proposals or renewals are due and the month you start writing them • In the case of individual donors, lay out the events you wish to invite them to, including private meetings, and enter them onto the calendar. • If you have a large staff, you can have each staff member post her or his events or deadlines with post-it notes.

42. Step back --Evaluation-- • Step back and look at the whole picture – a large calendar covered with notes and ask questions. • Are there months with too many events and deadlines? • Have you planned cultivation during holidays or vacations? • Has staff planned events too close to each other? • Have you forgotten to leave proposal circulation time for development banks? • Have you missed a grant deadline? • Rework the calendar until each prospect’s cultivation and request flows well and works with other deadlines and events as well as with holidays.

43. Strategic and practical questions to be weighed and sorted • What other ways of raising $$ are consistent with and might even further our organizational mission and values • What would other ways cost us, in time and $$, during development, execution, and over time • Do we have the organizational capacity to take on and stick with this plan • How will we set reasonable expectations that we can use to evaluate how new ways are working? • Alice Cottingham, Girl's Best Friend Foundation

44. DesignField Guide to Nonprofit Program Design, Marketing and EvaluationCarter McNamara, MBA, PhD, partner in Authenticity Consulting, LLC

45. DevelopmentJoan Flanagan, Author

46. ExecutionRichard Mintzer, Author

47. EvaluationIlona M. Bray, Author

49. Keys to your Fundraising Success

50. Fundraising Tips • Figure out how much it will cost to accomplish what you want. Make a CAREFUL, SPECIFIC budget for the year, detailing what you need to spend for each item. • Figure out how much money you can count on already, and how much you will have to raise. • Source: (www.nchv.org/fundraising.cfm)National Coalition for Homeless Veterans Fundraising Tips