Developing Your Resource Development PlanMIE Fundraising Conference July 25, 2019Aly Sterling, President | Emily Croak, Advisor

WELCOME

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➢ Introductions

➢ Why Do We Give?

➢ Today’s Philanthropic Landscape

➢ What Does the Future Hold? Five Fundamental Shifts

➢ The Philanthropy Blueprint

➢ Essential Fundraising Elements

➢ Donor Stewardship

➢ Designing your Compressed Philanthropy Blueprint

➢ Accountability and What’s Next!

Agenda

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Name and Title

Organization

Years of fundraising experience

What’s your biggest obstacle to fundraising success?

I N T R O D U C T I O N S

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Gauging Your Organization’s Fundraising Program

Prospecting

(events,

auctions,

raffles,

dinners)

Annual fund

(board, staff &

volunteer campaigns,

solicitation mailings)

Major Gifts

(organized strategy

to identify, research,

build strong relationships,

involve and ask donors

to invest in your organization

Legacy gifts

(bequests, gift

annuities, charitable

trusts, life insurance)

Step 1: Think about your organization’s current fundraising program.

Put an X where it currently falls on this continuum.

Step 2: Think about where you would like your organization’s fundraising

program to be in the next 2 years. Mark that spot with $ on this continuum.

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The Conscious Competence Learning Model

I don’t even know

what I don’t know.I know enough

to know

that I don’t

know enough.

I know a lot,

but it’s not

automatic yet.

I know fundraising

so well, I could do

it with my

eyes closed.

(Unconscious

Incompetence)(Conscious

Incompetence)

(Conscious

Competence)(Unconscious

Competence)

Step 1: Think about how much you currently know about fundraising.

Place yourself on this continuum with .

Step 2: Think about how much your board currently knows about fundraising.

Place them on this continuum with O.

Step 3: Think about how much your organization’s leader currently knows

about fundraising. Place him/her on this continuum with .

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Gauging Your Fundraising Comfort

Fundraising feels

like torture.

Please don’t

make me do it.

I don’t like it,

but I’ll do it.

I like fundraising.

It makes me feel good.

Fundraising is

my FAVORITE

thing to do.

PLEASE give me

more fundraising!

Step 1: Think about your personal feelings about fundraising.

Place yourself on this continuum with .

Step 2: Think about your board’s general feelings about fundraising.

Place them on this continuum with O.

Step 3: Think about organization leader’s feelings about fundraising.

Place him/her on this continuum with .

Why do we give?( A s t r e s s - f r e e e x e r c i s e . )

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Why we give:

Belief in mission

Sense of satisfaction in giving

Personal affinity to cause

“Paying it Forward”

Legacy

Loyalty

Because someone asked

Relationship w/ member of org

Vested interest in the success

Recipient of services

Compelling case stories

Positive impact/outcomes

Good fiscal stewards

Sense of urgency

“It’s the right thing to do”

Guilt

Past or current employee/volunteer

Past or current board member

Organization member

Had a positive experience or interaction

Event participant

Peer pressure

Organization has a sound strategy

Habit

Recognition

Two very different words: Philanthropy and Fundraising

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Philanthropy

Noun | phi·lan·thro·py | fə-ˈlan(t)-thrə-pē

Charity, the act of helping someone you don’t know, selflessly supporting a cause. To be philanthropic, you must give of yourself

without requiring something in return.

Roots: • Thousands of years old.

• In ancient Greece, citizens raised money for amphitheaters.

• Religious roots – building places of worship, tithing.

(Source: Merriam-Webster's 11th Collegiate Dictionary)

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Fundraising

Noun | fund-rais·ing | fŭnd′rā′zĭng

The intentional act of strategically soliciting giftsfor a specific cause or organization.

Roots:

• In the late 1800’s, a YMCA did a campaign in Nebraska. “Organized” fundraising began to take shape.

• 1919: First fundraising consultation firm.

• 1960’s: Staff model develops.

• Over 115 years, fundraising develops from an effort of only the very affluent to the 3rd largest sector of the U.S. economy.

(Source: Merriam-Webster's 11th Collegiate Dictionary)

Fundraising is a systematic,

coordinated effort inviting people to

experience the joy of giving.

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Practicing Your Personal “Why”For the next 30 seconds, turn to your neighbor and answer:

why are you passionate about your organization?

What’s happening in the world

of fundraising?

TO D AY ’ S P H I L A N T H R O P I C L A N D S C A P E

16Source: Giving USA Foundation I Giving USA 2019

2018 contributions: $427.71 billion by source

(in billions of dollars – all figures are rounded)

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2018 contributions: $427.71 billion by type of recipient organization

(in billions of dollars – all figures are rounded)

Source: Giving USA Foundation I Giving USA 2019

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So, why is fundraising so difficult?

According to three expert sources*:

• The average amount of time fundraising staff stay at their job: 16 months.

• 75% of executives reported that board member engagement is insufficient.

• 36% of organizations have no formal development committee in place.

• 31% of organizations (<$1M) have no basic fundraising system or strategy in

place. (By contrast, only 7% of “high performing” organizations are without

one.)

*BoardSource, Penelope Burk and UnderDeveloped: A National Study of Challenges Facing Nonprofit Fundraising

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How does this happen?

• We place all hope and responsibility in the hands of one person (or no one in many cases): the Development Director.

• We aren’t looking at fundraising as a priority that must be taken seriously and shared by all involved.

• We lack strategy and systems for performance evaluation and continuous improvement.

• The culture of philanthropy does not exist yet because an organization has been publicly-funded for a significant period.

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What can be done?

• Organizations must invest in fundraising capacity, strategy and systems.

• Staff, executives and board members must become deeply engagedin fundraising as ambassadors and solicitors.

• Fundraising and philanthropy should become embraced, understood and valued across the organization’s culture.

• Our development directors and fundraising staff should be key leaders and partners in the organization’s overall planning and strategy work.

…and what does the future

hold?

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A Few Facts & Figures*

• 1 every 15 minutes

• 10.5%

• 72%

• 91%

• 47%

• 10 times

• 16 months

• 71%

• 89%

*According to the IRS, National Council of Nonprofits & other sources…

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Generational Differences

Their Wallet(Silent & Boomer Generations)

The New Wallet (GenX & Millennial Generations)

70-75% give 50% give

Motivated by helping those with less Motivated by community & world

Money is freer; giving large amounts Money is tied up; small investments

“Sum it up” Specificity, impact & results

Big causes, big projects Micro-giving

Not swayed by others Influenced by peers & word-of-mouth

Not likely to change priorities Opportunists

Very religious Less religious

Traditional family structure Diversity

Male as decision-maker Partnerships or solo-giving

Love paper Hate paper

Hands-off Hands-on

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Gender Differences in Giving

• Rates of volunteerism are higher among women than men

• Households headed by females are more likely to give to charity

• Women tend to be motivated by a responsibility to help those with less and to respond to appeals to their empathy and compassion

• Men tend to view giving as an investment and are motivated by a message appealing to their self-interest rather than compassion

• Women control 51% ($14 trillion) of personal wealth in the U.S.

➢ And are expected to control $22 trillion by 2020

• Women are responsible for 86% of household’s consumer purchasing decisions

➢ They are not a niche market!

• For the top 60% of income earners, women are more likely to give, and give more, to secular causes than their male counterparts

Diversity in Giving, Blackbaud, 2015.Women’s Philanthropic Institute, 2012.Daniels, Alex. “Male Donors Respond Best to Pitches That Stress Self Interest, Study Says.” The Chronicle of Philanthropy, Feb. 2015.

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Racial and Ethnic Differences in Giving

• Nearly 3/4 of donors today are non-Hispanic whites even though they’re only 64% of the population (and declining).

• Latino donors: Young. Cause-oriented. Give spontaneously and emotionally. Give to church. Not asked often.

• African American donors: Religion and faith are important. Giving is personal and spontaneous. Interested in supporting unique heritage and community. Not asked often and are ready to give more.

• Asian American donors: Generous. Younger, well-educated, more likely liberal and female. Technologically connected. More likely to research and plan their philanthropy.

Diversity in Giving, Blackbaud, 2015.Charity Navigator, 2012.

The Philanthropy Blueprint℠

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What goes into a Philanthropy Blueprint?

COMMUNICATION

ANNUAL GIFTS

MAJOR GIFTSLEGACY GIFTS

STEWARDSHIPYOUR

PHILANTHROPY

BLUEPRINTSM

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The Donor Pyramid

LEGACYGIFTS

CAPITAL CAMPAIGNS

MAJOR GIFTS

THE ANNUAL FUND

PROSPECTING

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Donor Bill of Rights

Before We Jump In,

A Word About Prospecting

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Essential Fundraising Elements: Prospecting

Identification of prospects begins with…

Connecting with your board’s network

Direct mail

Mission-based fundraising events

Prospecting events

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Essential Fundraising Elements: Prospecting

My Treasure Map

Me _____

Family, Friends & Neighbors

Work

Church & Worship

Clubs & OrganizationsFoundations

Legal and Non-Legal

Professionals

Vendors & Suppliers

Communication

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#1 way to influence more generous giving:

Share how a donor’s gift was used.

• Abolish the phrase “best kept secret.”

• Communicate impact using multiple channels, often.

• Engage ALL constituents.

• Develop relevancy and partnerships across all sectors: business, education, civic, government and nonprofit.

Communication

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Communication Effectiveness

• Email, voice mail, letter

• Personal face-to-face solicitation

• Personal letter with follow-up telephone call

• Direct mail

• Special events and media advertising

MOST

EFFECTIVE

EFFECTIVE

LEAST

EFFECTIVE

Annual Fund

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Essential Fundraising Elements: Annual Fund

Cultivation begins with annual giving!

• Establishes and expands a base of donors

• Can be a way to involve, inform, and bond them to your mission, ideally

for repeated and larger gifts

• Successful annual fund grows your mission, programs and services by

providing a steady flow of income to cover operating costs

• Without an annual campaign, organizations resort to ineffective crisis

fundraising

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Essential Fundraising Elements: Annual Fund

Elements of the Annual Fund:

Board giving campaign (LSC and non-LSC boards)

Staff and volunteer giving campaign

Legal community campaign

Law firms, solo practitioners, corporate counsel, young professionals,

satellite campaigns, etc…

Non-legal community campaign

Direct mail and text/phone methods

Crowdfunding and online appeals

Corporate mission partnerships

Major Gifts

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Capacity – Affinity – Relationship

Capacity

RelationshipAffinity

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Essential Fundraising Elements: Major Gifts

Cultivation matures through major giving.

Packaging your mission in a way that creates opportunities for micro-gifts.

The next opportunity would be carefully-cultivated lead gifts from individuals who care deeply about your mission or certain programs

Usually come from trusting relationships developed over time through prospecting, annual gifts and cultivation

• Involve a lot of personal interactions

Transformational, “pause and think” gifts

Amount can be pledged and then paid over time

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Essential Fundraising Elements: Major Gifts

Targets for Major Gifts:

Individuals – Legal and Non-Legal

Corporate Partnerships (including General Counsel leads)

Foundations

Community Partners

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Essential Fundraising Elements: Major Gifts

The 5 “I’s”

Identification

Information

Interest

Involvement

Investment

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Essential Fundraising Elements: Major Gifts

Corporate Partnerships

Move beyond sponsorships – build an ongoing relationship with corporations

Cultivate corporations as you would individuals

Ask corporations for multi-year commitments using a customized menu of partnership opportunities

Do your research! Do their company giving priorities align with your mission?

Any connections between your board members and their leaders?

Do their employees volunteer with your organization?

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Essential Fundraising Elements: Major Gifts

Capital Campaigns and Endowment Campaigns

Targeted fundraising effort to raise a set financial goal for a capital project or an endowment before a certain deadline• E.g. building construction, renovation or expansion, land purchase or

improvement, purchasing equipment or furnishings, and/or building an endowment.

Start with a feasibility study• Test your stakeholders’ inclination and capacity to give to this project

• Helps you determine a realistic goal for your campaign

• Helps you adjust messaging about your project’s need

Keep in mind, embarking on any campaign takes serious commitment, strategy and an accountability partner!

Legacy Gifts

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Essential Fundraising Elements: Legacy Gifts

Cultivation culminates in planned or legacy giving.

Bequests

Gift Annuities

Charitable Remainder Trusts

Charitable Lead Trusts

Life Insurance

Planned giving is one of the simplest, and most worthwhile, strategies to integrate into your fundraising program!

☑Legal Aid is uniquely positioned for legacy gifts, now more than ever.

Donor Stewardship

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The majority of donors say they’d give again if, after

the first gift, they received the following three things:*

Prompt, warm, personalized and meaningful acknowledgment.

Reassurance their gift will be used as they intended (for a specific purpose).

Meaningful results about the program they funded.

*Source: Donor-Centered Fundraising by Penelope Burk

Essential Fundraising Elements: Stewardship

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What are the top three reasons donors stop giving?*

The absence of the above (no acknowledgment, no reassurance that their gift will be used as they intended, no meaningful results about the program they funded).

Distasteful fundraising tactics.

Over-solicitation.

*Source: Donor-Centered Fundraising by Penelope Burk

Essential Fundraising Elements: Stewardship

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Essential Fundraising Elements: Stewardship

Board Engagement 101

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What is the board’s role

in fundraising?

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Reluctance to Fundraise

Three primary reasons board members are

reluctant to fundraise:

1. They are unaware it’s an expectation or requirement.

•Recruitment + Opportunity + Evaluation = Performance!

2. They are unsure how to participate.

•Identify ways to get involved. Share progress at every board

meeting.

3. They lack specific fundraising skills.

•Develop the right skills by connecting your values, vision and

voice.

BoardSource’s Nonprofit Governance Index

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Values and Vision

VALUES & VISION

STRATEGY FOR

CULTIVATION

SOLICITATION

RECOGNITION STEWARDSHIP

& RENEWAL

IDENTIFICATION

D E S I G N I N G Y O U R C O M P R E S S E D P H I L A N T H R O P Y B L U E P R I N T ℠

Accountabi l i ty and Best Pract ices

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Strategic FundraisingActivity

3-Year Averaged Baseline

Year 1 Target Year 2 Target Year 3 Target3 Year

Projection Totals

Notes on Fundraising Activity Required to Meet Goal

Fundraising Events(total revenue for all organization-led events)

$4,000 $30,000 $35,000 $50,000 $115,000Evaluate profitability – track the input of staff time and include as an expense.

Third Party Events$0 $500 $1,000 $5,000 $6,500

Create a Tool Kit that empowers Third Party Fundraising.

Annual Giving(All annual unrestricted gifts, board, staff, volunteer campaigns, direct mail, memorial gifts, newsletter response gifts, unsolicited gifts, etc.)

$0 $30,000 $32,500 $50,000 $112,500

Formalize/refine board/staff giving campaigns.Develop a Case for Support.Include giving envelope in all newsletters.Package the mission and funding opportunities.

Major Gift Initiatives(All restricted gifts)

$0 $5,000 $50,000 $100,000 $155,000Hire a Director of Development to engage the DC to oversee all fundraising strategy and focus on Major Gift Efforts.

Capital Campaign Revenue - - - - -

Grants & Foundations

$60,000 $65,000 $75,000 $90,000 $230,000

Look to Family & Community Foundations, Private Trusts, Donor Advised Funds, XYZ Research and Membership Orgs, and Corporate Sponsors

Planned Gifts

3 10 15Representative of the numbers of letters of intent signed each year (Year 1 = 3, Year 2 = 10, Year 3 = 15)

Revenue Totals @ current staffing $64,000 $130,500 $193,500 $295,000 $619,000

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Key Performance Indicators

Direct Mail / Board / Staff / Volunteer Campaigns

KPI 2018 Outcome 2019 Goal 2019 Progress

# of new prospects

0 100 73

# actual donors 562 650 139

% participation 26.5% 33% No mailings in Q1

# of gifts 780 850 161

# of repeat gifts Baseline year 59

Overall financial target met

$57,848 $100,000 $10,020.77

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➢ G a i n b u y - i n f r o m e x e c u t i v e d i r e c t o r.

➢ L e v e r a g e y o u r b o a r d c o m m i t t e e s t r u c t u r e .

➢ E v a l u a t e w h a t ’ s p o s s i b l e w i t h i n t h i s p l a n …

➢ I n c r e m e n t a l p r o g r e s s i s b e t t e r t h a n n o p r o g r e s s !

➢ sample

W h a t ’s N e x t .

The Envelope Exercise and

Evaluations

Thank You

Q & A