LCT RoundTable Fundraising: Maximizing Philanthropy & Revenue Growth

1. WELCOME League of Chicago Theatres Emerging Theater Roundtable on Fundraising March 2, 2009 E. Brooke Walters, Director of Major Gifts Steppenwolf Theatre Company bwalters@steppenwolf.org - 312-654-5601 LCT RoundTable - Fundraising

2. Introduction to Fundraising Basic Types of Fundraising • Annual Fund • Special Event • Corporate Giving • Government Grants • Foundation Giving • Major Gifts LCT RoundTable - Fundraising

3. Invest in Philanthropyand Revenue Will Grow Comprehensive Development ProgramActive at Each Level of Donor Pyramid PLANNED GIVING PROGRAM DEFERRED GIFTS CAPITAL/ ENDOWMENT GIFTS SPECIAL/CAPITAL GIFTS PROGRAM Donor moves up through EDUCATION, INVOLVEMENT and MORE PERSONAL SOLICITATION SPECIAL PROJECTS GIFTS • ANNUAL FUND PROGRAM • MAJOR GIFTS • OTHER GIFTS MAJOR ANNUAL GIFTS RENEWED AND UPGRADED DONORS DIRECT MAIL/TELEPHONE PROGRAM/ SPECIAL EVENTS INITIAL DONORS PUBLIC RELATIONS/COMMUNICATIONS ALL CONSTITUENTS Important at All Levels: Donor Cultivation and Recognition/Stewardship Prospect Identification/Evaluation/Research LCT RoundTable - Fundraising

4. Mission of organization Relationships Family interests Religion Recognition Career enhancement/ political gain Tax deductions Social standing Why do individuals give? LCT RoundTable - Fundraising

5. The Annual Fund--What is it? • Develops public awareness and understanding of the organization • Stimulates unrestricted support • Identifies new prospects for giving • Upgrades current donors LCT RoundTable - Fundraising

6. Types of Annual Funds • General Mailings • Email Solicitations • Phone Solicitations • Memorial/Honorary Gifts LCT RoundTable - Fundraising

7. Timing • Calendar Year End • Season Announcement/Subscription Renewal • End of Fiscal Year LCT RoundTable - Fundraising

8. Prospective Donors • Ticket Buyers • Subscribers • Friends LCT RoundTable - Fundraising

9. Annual Fund Check List • Organization Resources • Organizing the Campaign • Timing • Solicitation List • Goal • Solicitor(s) • Acknowledgment • Measuring Stick/Reports LCT RoundTable - Fundraising

10. Special Events • How are they beneficial? • Educate a large group of people about the work of the organization • Favorable publicity • “Friend” raiser • Identify new annual campaign prospects LCT RoundTable - Fundraising

11. Special Event Types • Galas • Raffle • Fun run • Auction • ‘Thons • Dinner • “Non-event” LCT RoundTable - Fundraising

12. Special Events Contributors • Friends • Annual Fund Contributors • Careful about timing of solicitations • Mailing list • Corporate Sponsors LCT RoundTable - Fundraising

13. Contacting the Event Patron • Personal Invitation • E-mail/Mail • Media LCT RoundTable - Fundraising

14. Corporate Fundraising • Why do corporations make donations? • Employee interest • Good citizenship • Tax benefits • Timing: Be Budget Aware • Budgets set up on a fiscal year basis • Funds allocated each fiscal year for the next year • Donations budget may be adjusted depending on the profit needs of the company LCT RoundTable - Fundraising

15. Types of Corporate Donations • Direct disbursement of funds from budget • Product donations • Matching contributions LCT RoundTable - Fundraising

16. Corporate Donation Guidelines • 501(c)3 status • Charitable mission • Timing of Request • Proposal form • Build strong relationship with giving office • Customer relationships. LCT RoundTable - Fundraising

17. 501(c)3 Status • Tax definition is crucial from corporate viewpoint • Corporation expects tax benefit • Proof will be required LCT RoundTable - Fundraising

18. Mission of Organization • Reason for being needs to fit with corporate guidelines • Used in ranking of corporate gifts • e.g. education, children in need, location, etc. LCT RoundTable - Fundraising

19. Donation Timing Options • Budget deadlines • Timing may be set by fiscal year • First come, first served • Any Trustee or volunteer connection to the corporation should be leveraged LCT RoundTable - Fundraising

20. Format for Proposal • In writing • Some organizations may have specific format guidelines LCT RoundTable - Fundraising

21. Government Grants • Illinois Arts Council • Start with Program Grant Guidelines • NEA (grants.gov) • Department of Cultural Affairs (Google City of Chicago + Cultural Grants) • CAP Grants – City of Chicago Technical Grants for Start-Up Companies LCT RoundTable - Fundraising

22. Other Tips • Freedom of Information Act requires all information for government grants to be accessible. • Follow grant rules to the letter • Pay close attention to dates • Be persistent and patient LCT RoundTable - Fundraising

23. What is a Foundation? • Organizations set up for public giving • Managed by own board of directors/ trustees • Most have annual budgets for giving • Most have specific giving guidelines • Research through Guidestar or go to The Donors Forum LCT RoundTable - Fundraising

24. Types of Foundations • Family Foundations • Independent foundations formed after donor dies and original family withdraws from foundation. • Corporate Foundations • Legal entity that some corporations set up with the specific purpose of handling charitable donations. • May have a specific interest area. • Community Foundations • Funds come from a variety of donors LCT RoundTable - Fundraising

25. Role of Foundation Board • Board of directors evaluates funding requests • Requests usually in the form of grants LCT RoundTable - Fundraising

26. Evaluation Criteria • Mission/Purpose of funds • Stated focus • Credibility of Volunteer Organization • Ultimate dispersal of funds • Used directly for programs or for operating funds • Timing • 501(c ) 3 status • Proposal form • Strong relationship LCT RoundTable - Fundraising

27. Guidelines for Grant-writing • State your mission clearly • Keep grants concise but answer questions • Focus on beneficiaries of grant • Get input from foundation and others in your organization • Complete application form flawlessly • Pay attention to evaluation criteria • Address how project will be sustained long term LCT RoundTable - Fundraising

28. Common Reasons Grants are Declined • Grant does not specify how the funds will be: • Planned • Scheduled • Controlled • Reviewed • Does not include evaluation criteria • Too ambitious in scope LCT RoundTable - Fundraising

29. Reasons Grants are Declined (Continued) • Leaves too much to the imagination • Poorly written • Did not follow guidelines • Inefficient evidence that the project can sustain itself • Numbers in the budget do not add up. LCT RoundTable - Fundraising

30. Major Gifts Definition • A large gift given now • Non profit needs to define the dollar amount • Dependability offers growth potential, further fundraising, political power LCT RoundTable - Fundraising

31. Major Gifts’ Complexity • Time • Develop relationships with donors • Very personal solicitation • Relationship building LCT RoundTable - Fundraising

32. Major Gift Elements • Donor Research • Internal Research • External Research • Organization Leadership • Monetary goals for prospects • Cultivation • Thank you! • Recognition LCT RoundTable - Fundraising

33. Training to Ask for the Big Gift • Prepare a kit of materials for solicitors • Brief history • Achievement highlights • Need for request • Step by step outline for volunteers • Practice asking for monetary gift • Act it out LCT RoundTable - Fundraising

34. Donor Research Material • Magazines • Newspapers • Reference Books • Nonprofit Sources • Publicly Held Companies LCT RoundTable - Fundraising

35. Contacting the Major Gift Donor • CEO/Director • Board Member • Volunteer LCT RoundTable - Fundraising