YWCA Capital Campaigns: Building a Bright Future

1. YWCA Capital Campaigns Building a Bright Future October 24, 2013

2. YWCA USA Fund Raising Training Series A series of 6 webinars designed to help local YWCAs build their fund development capacity: • Fund Raising 101 (June 28) • Developing Your Annual Fund Raising Plan (July 25) • Major Gifts (Aug. 22) • Fund Raising Events (Sept. 19) • Capital Campaigns (Today) Presented by Rita Ryder and Ashley Hulsey • Planned Giving/Endowment (Nov. 22, 2 p.m. EST)

3. What’s A Capital Campaign? A Capital Campaign is a vision-based, major fundraising initiative to: • Build • Renovate • Endow • Equip • Create Depending on the bodaciousness of the vision and the size and capacity of the YWCA, goals can range from $250,000 to $40 million+

4. What Are Local YWCAs Doing? • 41 YWCAs planning or conducting a Capital Campaign • Goal size: • 7.5-$20 million+: 18% • $3-$7 million: 23% • $1.5-$3 million: 13% • Under $1.5 million: 46% • Campaign Purpose: • Renovation: 66% • New facility: 17% • New program: 22% • Finance existing program: 15% • Endowment: 29%

5. Capital Campaigns: A Great OpportunityAn Organizational Milestone...An Historic Event • Expand, improve services; meet community needs • Strengthen YWCAs business model • Enhance YWCA profile, stature • Cultivate new donors…major donors, “next gen” • Excite current donors…..engagement, gift size • Increase Board, staff capacity • Provide leadership opportunities of a life-time A successful campaign can be transformative; taking the YWCA to new levels of leadership, effectiveness, influence.

6. The Key to SuccessGrabbing Hold of the Big Picture The Capital Project The Fund Raising Project

7. Mitigating Capital Project Risks • Intensive, Exhaustive Conceptual Design Phase • Vision: compelling, needs-based • Cultivation---community input • Program: best practices, innovation • Financial parameters • The Right Team • Architect, owner’s rep, financial consultant • Staff, including program staff • Board members with relevant expertise • Realistic, Comprehensive Budgets • Design, construction • Hard costs, soft costs, one-off costs • Government grant requirements • Contingencies, inflation • Operations….facility, ramp up, program, reporting

8. Common Capital Campaign Risks • Fundraising misses mark • Planning not adequate • Capacity development • Marketing/public relationships • Constituency mining/gift charting • Leadership lacking; Board not engaged • Donors not excited, not confident • Campaign staff insufficient, lack expertise • Capital budget “over-runs” • Prior government grants need to be repaid • Deals fall through • Annual fund suffers • Negative economic cycle

9. Planning Your Successful Campaign An Illustrative timeline: Test, Improve Deliver on the Vision Fund Raise Plan

10. Develop your Capital Campaign “Case” • Brief statement of mission, programs, history • Vision and promise • Critical community needs • The project you’re planning: • Addresses needs, “moves the dial” • Innovative and effective • Collaborative • Description of construction, renovations, etc. Drawings helpful • Impact on ongoing operating budget (e.g. strengthening business model) • Your Capital Campaign: • Financial goal • Projected sources e.g. government, corporations, foundations, community • Campaign leadership • Summary of campaign benefits • Gift chart and naming opportunities

11. 2. Set Your Fund Raising Goal Determine the Cost of Your Vision: Your Campaign Goal • All Planning, design, construction costs…+ • Other Vision components e.g. Endowment (Annual Fund?)... + • Interest costs e.g. bridge loans……+ • Total fundraising expenses…… + • Start-up costs (e.g. new program ramp-up) Total Cost/Goal: $2.5 M Identify Sources of Available Revenue • Grants/tax credits/”loans” from government • Expected proceeds from sale of YWCA property minus • Realtor fee, other sales costs; mortgage repay • Any Government grant repayments Revenue Sub-Total: $1.3 M • Charitable gifts needed to meet goal Cost minus Revenue: $1.2 M Assess Feasibility of Raising Total Charitable Gifts Needed: $1.2 M • Analysis of current donors, prospects • Other stakeholder input e.g. “feasibility study”

12. 3. Assess Campaign Feasibility (“Campaign Planning”) The Campaign Planning (“Feasibility) Study Purpose: • Engage Board, select volunteers, foundation and business reps, donors, community leaders • Assess “institutional readiness” • Test feasibility of goal • Test key messages/“Case” • Assess energy, excitement, enthusiasm, passion • Identify sources and amounts of support • Identify potential campaign leadership • Identify areas needing “shoring up” Approach: consultants, internal, hybrid Timeframe: 2+ months

13. 4. Create Your Gift Chart—Analyze, “Rate” Donors Customize to your YWCAs constituents, donors, prospects. A “living document”; modify/ as needed. $2.5 million: Note: Top gift should be 15-25% of goal 2) Identify 3 prospects for each larger gift 3) “Community Campaign: many smaller gifts, high future vitality value.

14. But What If We Have “Feasibility” Problems? Some options: • Address weaknesses (delay campaign start) e.g. • Clarify project vision, concept • Enhance the Board….recruit new members • Develop/implement plan to raise YWCA “profile” • Deal with “confidence” issues, other negatives raised by stakeholders • Scale down your project and the Capital Campaign goal • Phase project; identify components to be deleted, if needed • If competing campaigns an issue, refine vision

15. 5. Develop Your Capital Campaign Team • Recruit Leaders • Individual? • Couple? • Multiple Co-Chairs? • Recruit Other Campaign Committee Members • Sector leaders • New/old philanthropy leaders • Foundation experts • Community campaign experts • Media reps; PR experts • Develop Staff Team • Secure Consultants: FR, PR

16. Capital Campaign Roles

17. 6. Make it “Easy” to Give: Convenience, Incentives, Recognition • Enable donors to “spread” gifts over 2-3 years • Create naming opportunities for major gifts • Accept gifts in many forms (Gift Acceptance Policies) e.g. • Appreciated stock • Real estate • IRAs • Charitable trusts • Create recognition opportunities e.g. • Tiles for donors at the $5k level • Wonder Women/Super Men at the $10k level • Donor “Wall of Fame” • Meaningful Campaign souvenirs

18. 7. Create Campaign Awareness, Momentum, “Buzz” • Develop creative and meaningful campaign theme • Develop excellent support materials e.g. • Data on community needs, YWCA’s move-the-dial approaches • Drawings of capital project • Gift chart • Recognition opportunities • Quotes/endorsements from community leaders • Establish, celebrate benchmarks with creative events/activities e.g.: • Milestones towards the campaign goal • Ground breaking • Topping-off • Grand opening • Feature the campaign in social media, all regular YWCA events and communications

19. 8. Solicit Your Larger Gift Prospects First Board Campaign (100%) Community Campaign Major Gifts Remaining Larger Gifts Lead Gifts • Lead gifts and major gifts set the tone of the campaign, “gauge” other gifts. • Phases may overlap e.g. some major gifts may develop in subsequent phases • Fund raising schedule varies by goal size, etc.; beware volunteer burnout, fatigue

20. 9. Design an Outstanding “Community Campaign” PhaseDon’t be tempted to celebrate on the 5 yard line • A great opportunity to expand the YWCA’s donor base, increase YWCA’s community profile • More effort/fewer dollars, but great long-term outcomes • Some approaches: • TV PSAs • Social media • Pro bono newspaper ads • Projects with Rotary, other service groups • Presentations to Chamber, Business groups • Holiday opportunities e.g. “Make a Mother’s Day” • Next Gen special events • Direct mail campaign • Special features in YWCA newsletters • School projects • Creative “collections” e.g. “Challenge for Change”

21. Some Often Asked Questions • How can we protect our annual fund during a campaign? • Incorporate your annual fund goals in the Campaign Goal • Feature the campaign at events, guarantee $’s to the Annual fund • What can we do if our Campaign stalls out? • Recruit new leadership • Solicit a significant “matching gift” to spur new donors • Regroup, then conduct Phase II • Downscale capital project or postpone components • How can we excite donors about renovation? • Vision • More vision • What’s a reasonable amount to spend on fundraising costs? • Depends on size of campaign, current staff and volunteer resources • Range of 3% (for large campaigns) to 7% • It’s ok to rest on our laurels once the campaign is over, right? • Yes….celebrate, reflect, pat everyone on the back (for about 1 week)! • The time immediately following a campaign is a unique opportunity to transition capital donors to annual fund major donors. Take advantage!!

22. Resources/Tools We’ll Send You • The PowerPoint from this webinar • A list of common Capital Project Risks and Mitigations • An index of professionals involved in capital projects • Common Capital Campaign Feasibility Study questions • An example of a Capital Campaign “Case” • A sample Campaign Pledge Form • Examples of YWCA Campaign themes

23. Q & A