Developing a Strategic Fundraising Plan

1. Developing a Strategic Fundraising Plan Youth United Conference Call

2. How Are We Raising Funds Now? • Share your most successful fundraiser and how much you raised. • What are your challenges? • How can we raise a lot of money in a sustainable way?

3. Key Concepts 1. Effective Fund-raising is All About Relationships • Why do people donate? • Top Reason: asked by someone they know. • Start with “Who do we know?” (take some time for them to jot down all the people they know – then share) • Individuals, churches, civic clubs, student organizations, foundations, businesses, etc.

4. Key Concepts 2. Use the Right Fund-raising Strategies • What are some ways of raising money, besides fundraising events? • Match strategies with prospects • Presentation for church or civic club • Written proposal for foundation or business • Contest for student organizations • One on one ask for wealthy alumnus.

5. Key Concepts 3. Engage the Spectrum of Donors • Large number of small donations or small number of large donations? • 80-20 rule: 80% of your funding will come from 20% of the donations you receive.

6. Key Concepts 4. Cultivate Major Donors • Individuals donating $500 or more • Develop a base of major donor support • Start small and grow

7. Key Concepts 5. Use Special Events Wisely • Can be costly, time and labor intensive. • Good means to: • Cultivate relationships • Educate prospective donors • Tap large number of small donors

8. Key Concepts 7. Cultivation Takes Time • Donors may increase donations over time with positive results. • Have system to cultivate donor relationships. • Thanking, recognition, information, invitations

9. Steps for Effective Fundraising • Establish Goals and Purposes • Create a Fundraising Committee • Examine Fundraising History • Identify and Prioritize Prospects • Select Strategies • Follow Up and Communicate with Donors

10. Step One: Establish Goals and Purposes • How much money are you raising and why? • Motivates members • Gives something concrete to shoot for • Allows you to communicate clearly with donors • Inspires donors to give

11. Step Two: Create Fundraising Committee • Five-ten people, chair or two co-chairs • Time, drive, commitment • Variety of skills • writing letters and proposals, designing presentations, organizing activities, asking for donations, etc. • Faculty, affiliate, community members as advisors • Position descriptions

12. Step Two Cont’d Collaborating with Other Organizations • Each organization has its own fund-raising committee • Form joint fund-raising committee representing each organization • Each group develops and submits fundraising plan to committee • Committee: • Coordinates fund-raising efforts of all groups • Reviews all plans for overlap. • Ensures that prospects are not approached more than once. • Obtains affiliate approval • Communicates regularly with partner affiliate • Coordinates collaborative efforts • Formulate joint case • Fundraising strategies

13. Example

14. Step Three: Examine Fund-raising History • Look at past experience. What worked? What didn’t? • Criteria • Funds raised, expense, net profit • Number of people needed • People hours invested • Cultivation value

15. Step Three Cont’d • Worth repeating? • Criteria • Can profit be increased in future? • Were benefits worth the investment? • Has a fundraiser become more successful over time? • Potential to do so?

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17. Step Four: Identify and Prioritize Prospects A. Start with who you know • Identify significant chapter connections using LIA principle: • Linkage • Interest of the prospect • Ability to assist you

18. Step Four Cont’d • Individuals or groups • Significant funds or in-kind donations. • Full chapter leadership should participate in process.

19. Step Four Cont’d • Brainstorm prospects. With whom does your group have a linkage or connection, that might have an interest in your goals and the ability to assist you?

20. Step Four Cont’d • Churches, Civic organizations, other community groups • Local businesses and corporations • Activities that we are involved with • Family or community grant-making foundations • Key faculty, administration, and staff members • Campus alumni and chapter alumni • Family, friends, neighbors, relatives • Anyone else?

21. Step Four Cont’d B. For each prospect: • Linkage • Main Contact • What might they contribute: • Funds • In-kind donation of goods or services • Donated before? When?

22. Prospects Linkage Contact For what? Given Before? Sarah L Julie Jones $8000 No Family Foundation Ron T Ron’s Dad $4000 No ABC Company President $2000 last yr John C Fr. Bob $2500 St. Mark’s Church Heather Jean Smith Airline Tickets No United Airlines Jim Felder Vinyl Siding Yes, 3 yrs ago Bob F Vinyl Siding company

23. Step Four Cont’d C. Prioritize Prospects • Who are top priority monetary prospects? • Top in-kind prospects? D. Share prospect list with affiliate • Obtain their approval before proceeding

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25. Step Five: Select Strategies • Determine best approach for each prospect • In-kind prospects: direct ask or letter/phone call • Monetary prospects: be strategic

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27. Step Six: Follow Up and Communicate with Donors • Thank donors within 72 hours • Creative thanks and recognition for larger donors • Keep donors informed