Walter C. Farrell, Jr., Professor School of Social Work

1. FundraisingLecture Case Statement, Development Assessment, Campaign Organizational Structure and Goals, Gift Pyramid, Accountability and Sustainability Walter C. Farrell, Jr., Professor School of Social Work .University of North Carolina at Chapel Hill Chapel Hill, North Carolina 27599-3440 farrellw@bschool.unc.edu

2. Group Activity: Selling, Telling, & Sharing As go through the presentations, I am asking Ms. Avery and Mrs. Godhinoto Critique each other’s Case Statement and then report to the class Ms. Williams and Ms. Mason will also Critique each other’s Case Statements

3. Case Statement/Business Plan • Statement of why your organization exists, what it does (Project Definition/Marketing Strategy) • It describes in some detail: • The need the nonprofit was set up to meet • The way it will meet that need (Target Market/Implementation Plan and Timetable) • The capacity of the nonprofit (Risks/Exit Plan) • It is an internal document for use by staff, board, and key volunteers • Parts of it will be used in brochures, proposals, direct mail letters, etc.

4. Elements of the Case Statement • Mission – tells the world why nonprofit exists, its unique role • Goals – tells what nonprofit hopes to accomplish, how it plans to solve the problem • Specific, Measurable, and Time-LimitedObjectives* - tell how goals will be met • Summary ofNonprofit’s History – shows that nonprofit is competent and can meet its goals, service quality(Industry Analysis/Competition) *May change annually

5. Elements of the Case Statement (cont’d) • Description of NonprofitStructure – discusses board and staff size, composition, governance, and people involved in the organization (e.g., clients, organizers, teachers, etc.), Project Operations and Management • Fundraising Plan – how you will secure funding, preferably from a broad array of funders • Budget/Financial Statement – shows that the organization spends money wisely, and profit and loss, assumptions, cash flows* Shows that salaries, benefits, rent, and other costs are consistent with the mission *Normally will change annually

6. Determining Natural Partners • Identify groups and organizations doing similar work OR different work but with a similar vision • Think about how you could avoid duplicating efforts and find mutually beneficial relationships • An essential strategy of a good fundraising program

7. Natural Partners Your NonProfit • COAL • PISGAH LEGAL SSERVICES • NC HOUSING COALITION • GLOBAL VISIONARIES • BECOMING TOBACCO FREE

8. Selling, Telling, And Sharing: Its All In How You Ask • Selling- can sometimes spread the excitement of the salesperson to get the "customer" to make a purchase , but if that person isn't shopping then selling can feel forced or manipulative • Telling - a one-way exchange of information, people who are communicated to in this way are often turned off and lose energy • Sharing - involves an intention that comes from the heart and a dialogue with other people

9. Importance of Board of Directors • Ensures organizational continuity • Sets policy and reviews and evaluates organizational plans • Forms long-range plans • Maintains fiscal accountability • Responsible for FUNDRAISING! • Hires, evaluates, and fires staff

10. Reason for the Case Statement • Having a fully developed Case Statement helps guarantee that information presented by board, staff, volunteers, etc. is CONSISTENT • It rallies people to your cause • Your Case Statement should be reviewed annually* *Rarely done by most nonprofits

11. Developing the Case Statement • Usually developed by small committee, and is worth spending a good amount of time to complete • Board, staff, and key volunteers must agree on its contents, especially the mission and future plans • The people who must implement the plan must believe in it to do successful fundraising work • Hurrying the process will come back to haunt the organization

12. Case Statements Should • Be Compelling, Clear, Simple • Be Concise (but long enough to articulate your position) • Describe Need For Services/Products • Provide Supporting Data* • Present Credentials/Successes • State Funding Goal *May be internal or external (for fledgling nonprofits)

13. Case Statement Mistakes • Too Institutional • Provide Too Little Rationale/Sense of Urgency • Provide Too Little Basis For Confidence In Your Organization • Emphasize Need/Project Over Opportunity • Overly Slick (may suggest “excessive expenditures”)

14. Foundations (cont’d) • Foundations can be researched through: Internet, Foundation Directories, etc., and all have published funding guidelines • Most will request some form of proposal and will provide specific formats (or you can use your Business Plan)

15. Government Grants (Funding) • Often, there are categorical areas of funding that continue over the long-term: alcohol and substance abuse, at-risk youth, child welfare, etc. • Funding/grants are predicated on objectives of government administration: local, county, state, and federal

16. Government Grants (Funding) (cont’d) • They are also predicated on current “whims/interests” of government (Mayor, County Executive, Governor, President, and their key officers [cabinet officials]) • Faith-based funding • Welfare reform • Education reform • Etc.

17. Development Assessment • Determines Organization’s Capacity for Fundraising • Helps New Development Staff (or Staff Assigned the Role) to Acclimate • Gets New Exec. Dir./CEO Up and Running in FUNDRAISING

18. Development Assessment(Cont’d) • Requires Buy-in from Exec. Dir./CEO, Board, and Staff • Encourages Staff, Volunteers, Donors, and Community Members to Take Active Role in FUNDRAISING Campaign • Critically Examines the Organization’s FUNDRAISING Strategy

19. Development Assessment(Cont’d) • Operates on a Timeline that is Really Dependent on Time Availability (Although 4-12 Weeks is Recommended) • Provides Basis for Setting Realistic Goals for FUNDRAISING from Different Audiences • Outlines/Suggests Steps to Solicit Financial Support in a Cost-Effective Manner

20. Development Assessment(Cont’d) • Measures Public and Donor Perceptions of Management’s Function and the Fundraising Operation • A Development Assessment Does Not Assess Staff Capability or Service Delivery • Development Assessment is Usually Handled by an Internal Coordinator in Small to Medium-Sized Organizations (or Those With Tight Budgets)

21. Campaign Organizational Structure • Do You Have a Strong, Representative Board? • Do You Have Adequate Volunteer Involvement? • Do You Have Sufficient Staff Resources?

22. Successful Fundraising • Set a Goal • Build a Team • Expand a Prospect List (One Should Already Be on Hand) • Outline Personal Solicitation Strategy • Build Fundraising Pyramid

23. More Personal Less Personal The Donor Pyramid Major Donors Leadership Donors Upgraded Donors Regular Donors Acquiring Donors

24. May Have Outsiders Staff / Volunteer Organizational Structure Development Officer / Executive Director Board Fundraising Steering Committee Advisory Council Donor

25. Mission • Vision • Policy Direction • Advocacy Building • Constituency Development • Fundraising • Community Relations The Organizational Triad Governance and Management Program Administration and Execution Support Division • Service to Mission • Program Responsiveness Combines Best Creative Energies From All

26. Setting Fund Raising Goals • Review Income Sources From Previous Years • Create a Spread Sheet and Categorize Contributed Income Based on Its Source • Look for Trends Within Various Types of Contributed Income

27. Setting Fund Raising Goals (Cont’d) • Calculate Average Annual Rate of Growth (or Decline) for Each Category of Income • When Planning a Special Project, Meet With Potential Funders to Assess Support • Hold Meetings to Discuss Information Above With Board Fundraising Committee and Development Staff

28. Setting Fund Raising Goals (Cont’d) • If a Negative Trend Has Been Identified, Discuss Plans for Improving Performance • Discuss and Develop Fundraising Plans for Coming Year • Make Final Contributed Income Projections Based on Past Performance and Fundraising Plans

29. Setting Fund Raising Goals (Cont’d) • Be Realistic When Setting Goals • When Preparing a Budget, Project Your Income Before You Project Your Expenses • Build a SURVIVAL, REASONABLE, and MAXIMUM Goal for Your Organization

30. Sustainable Fundraising • FUNDRAISING Solicitors Should Reflect the Diversity of Communities Served • Link FUNDRAISING to Board’s Talents • FUNDRAISING Sustainability is Ultimately About Connecting to People (Donors) • Continuous Planning is Key to Long-Term FUNDRAISING Success