A SIGNATURE PROGRAM OF INDIANA GRANTMAKERS ALLIANCE

1. A SIGNATURE PROGRAM OF INDIANA GRANTMAKERS ALLIANCE

2. 2013 BOOT CAMP

3. Unit 5Asset Building Community Foundation Boot Camp

4. Asset Building or Fundraising? • Long-term rather than immediate • Based on donor interest rather than organization’s program • Few gifts, generally large, rather than numerous, small gifts • High use of planned and estate gifts rather than outright cash or occasionally securities • Often involves whole family rather than just one person • Builds gifts into ever-growing pool of permanent funds rather than starts over every year

5. Donor Relationships are Key to Success • Think about what you currently do for donors – stop guessing and start measuring • Behavior is more important than demographics • Evaluate and manage your donor base • Segment your donor lists • Start with the most likely • Identify possible small groups with similar interests • “Counting Coup” – acts of prestige by Plains Indians means many touches results in victory • Plan your donor experience management – you can’t do it all

6. Segmentation • Annual donors • Most likely to make major/planned gift • Professional advisors • Referrals are best source of planned gift prospects • Be their “philanthropic partner” not their competitor • Planned gift donors • Capture your part of the immense Transfer of Wealth! • Irrevocable gifts – steward funds, keep in touch • Revocable intentions – deepen relationship, options for giving while alive • Donor Advised Fund Opportunities • Alternative to “Family Foundations” • Market to those with “commercial” DAFs (Fidelity, Schwab etc.); can we convert? • Business leaders and corporations (investment) • Sponsorship opps • Young professionals • Board and former board members

7. Internal Management Tools • Keeping good records is essential – whatever the system • Consider results of having volunteers write reports • Plan your activities and those of your volunteers – be reasonable • Accounting systems can simplify your information in one place • Consider who has access and can enter/edit what information • As a forever organization, those who come after you will benefit from your data

8. Growth Takes Planning • Start with an analysis of the last 3-5 years to understand your organization • Measure number of gifts, types of gifts, new funds or additions, source of gift • Engage board members in annual review – in a simple form • “If you always do what you always did, you always get what you always got” • Consider measuring growth in other than total dollars received

9. Growth Takes Planning • A development committee enables all other board members to avoid participation • Use a committee to meet a couple of times to make a plan • Pick those who enjoy asset development to make them champions for the process • Set measurable goals in small incremental steps • Growth goals are primarily internal – stretch but don’t overwhelm • Share your plans

10. Match Your Volunteers With Their Strengths • Make an individual plan with each board member – for example: • “Salesmen” make individual calls • “Nurturers” are good with existing donors • “Community activists” could handle other nonprofit agency presentations • “Shrinking Violas and Verns” could visit professionals • Consider time commitments • Use board members for the most important functions, not lots of committees • Building relationships take time • Review your plan annually and adjust accordingly

11. Donor Lifecycle Cultivation Identification/Qualification • Advanced • Relationship • Visits • Passions • Linkage • Capacity • Propensity • Early • PR • Peer to Peer • Events • Committees • Board member referral • Professional advisor referral • Giving history • Event guest • Relationship to CF • Wealth screening Build, maintain and enhance relationships! Stewardship • Timely thank you • and IRS-proof receipt! • Annual reports • Planned ‘touches’ • Unplanned opps • Next gift opportunity? Solicitation • Natural partner • Proposal • Gift agreement

12. Board Members’ Roles • Make an annual gift • Consider adding CF to estate plan • Speak publicly about CF – Advocate! • Personal elevator speech • Contact 4-5 prospects – visit, letter, open door • Thank you calls • Host small group events • Contact lapsed donors • Why did you leave us; will you come back? • Recruit committee and board members • Host volunteer recognition event • Assess fundraising culture

13. Types of Gifts • Cash – rare in our world • Securities – one of the most used • Real estate – great potential but learn the guidelines • Personal property – be careful here • Agricultural products – becoming more interesting • Retirement plans – depending on tax laws can be good or bad

14. Planned Gifts • Generally include trust and wills • Trusts can be revocable or irrevocable • Generally mean gift arrangements that provide funds upon death of donor and successors • Should involve different legal representation for foundation and donor • Assure foundation policy regarding role of trustee

15. Planned Gifts Basic forms: • Charitable remainder trust – money in trust pays someone until death of last beneficiary • Charitable lead trust – money to charity for defined period of time with earnings to charity until end of period then back to family • Charitable gift annuity – money to charity for lifetime of beneficiary; attractive payout rates; remainder to charity to fulfill donors’ philanthropic legacy • Will – written instructions for disposition of assets – may be changed at any time

16. Planned Gifts • Don’t try to become an expert – build a team to help • Create a recognition group for those who have included the foundation in estate plans • Market planned gifts through stories, publically recognize donors

17. Fund Agreements • Case studies for discussion for what type of fund prospect may want • Avoid foundation jargon when discussing funds • Clarify donor intent and involvement • Be cautious about too much information

18. Some Process Tools • Legacy Society • Matching • Campaigns or Days • Stages and moves management • Peer screening with boards and committees • Overview document • Governance reporting to board

19. Name Address Occupation Company Name Address Occupation Company Name Address Occupation Company CEO Boot Camp - 2012

20. Challenges to Successful Asset Building • Absence of an agreed upon plan for board and staff • Lack of board “practicing” their skills at board meetings • Distractions due to lack of focus • Foundation invited to be involved in everything in the community • Board easily distracted due to fear of “asking for money” • Staff trying to do everything • Competing with your nonprofit partners in fundraising • CF endowments compliment NP annual fund (not compete!)

21. References • The Artful Journey by Bill Sturtevant • Giving 2.0 by Laura Arrillaga-Andereessen • 59 Minute Guides • Askingby Jerold Panas • The Fundraising Habits of Supremely Successful Boards by Jerold Panas