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Building a Sustainable Funding Base for your Organization

Building a Sustainable Funding Base for your Organization. Jan 26, 2007 Sponsored by the Chesapeake Bay Funders Network & The Chesapeake Bay Trust Presented by Pat Munoz River Network. “Typical” funding profile for staffed environmental groups*. Events 3%. Individual Donors 13%.

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Building a Sustainable Funding Base for your Organization

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  1. Building a Sustainable Funding Base for your Organization Jan 26, 2007 Sponsored by the Chesapeake Bay Funders Network & The Chesapeake Bay Trust Presented by Pat Munoz River Network

  2. “Typical” funding profile for staffed environmental groups* Events 3% Individual Donors 13% Grants 48% Foundation, Government, Corporate Earned Income 13% Membership 17% *Source: Mott Foundation survey of 758 groups in the Great Lakes and Southeast States

  3. More predictable Membership renewals Major Donor Gifts Special appeals PREDICTABILITY OF FUNDING Corporate grants Government/Foundation project grants Less predictable Restricted $$ Unrestricted $$ FLEXIBILITY

  4. Where do private charitable donations come from? 2005 Contributions: $260 Billion By Source of Contributions Foundations 11% Corporations 5% Bequests 7% Individuals 77% Source: Giving USA FoundationTM — AAFRC Trust For Philanthropy/Giving USA 2006

  5. Where do private charitable donations go? 2005: $260 Billion Environment/animals $8.8 Billion 3.4% Public-society benefit 5.4% International Affairs 2.5% Arts, culture, and humanities 5.2% Foundations 8% Unallocated 6.2% Religion 35% Human Services 9.7% Source: Giving USA FoundationTM — AAFRC Trust For Philanthropy/Giving USA 2005 Health 8.7% Education 14.8%

  6. How to Ask: Ladder of Effectiveness Face-to-face Request (50%) Personal Phone Call (25%) Personal Letter (15%) Phone-a-thon (10%) Special “In-house” Mail Appeal (6-10%) Direct Mail Prospecting (1-3%) Online (?)

  7. Why does ANYONE give? Because you have asked them effectively!

  8. Top “Sustainable” Strategies • Member Recruiting & Renewals • Special Appeals • Major Donor Program • Special Events • Corporate Grants & Sponsorships

  9. Member Recruiting

  10. Member Renewals

  11. Special Appeals

  12. Events

  13. Major Donor Program (including board)

  14. Corporate Grants and Sponsorships

  15. Criteria for Selecting Strategies • Fit with Mission • Cost effectiveness • Availability of skills/resources • Past experience • Does it build capacity? • Timing • Is it repeatable? • Other benefits

  16. More predictable Membership renewals Major Donor Gifts Special appeals PREDICTABILITY OF FUNDING Corporate grants Government/Foundation project grants Less predictable Restricted $$ Unrestricted $$ FLEXIBILITY

  17. Diversify Your Funding Base!

  18. Do you have... a fundraising plan?

  19. For Each Strategy: • Goals • Activities • Responsible Person(s) • When? • How much?

  20. Annual FUNDRAISING PLAN New Member Recruiting

  21. Do you have... An operating reserve?

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