Post on 26-Dec-2015
May 2004 © Organization Futures LLC 2004 1
Total Organization Fundraising Ken Phillips, Organization Futures LLC CFP Workshop May 2004
Benefits to donors
Credibility
Positioning
Results Strategy
Value Added
May 2004 © Organization Futures LLC 2004 2
The Role of Nonprofits• Promote a socially worthwhile cause• Provide services in health, education or welfare• Advocate to society, business and government• Educate the public regarding this cause• Use voluntary contributions and volunteer time • Maintain your independence and free voice
May 2004 © Organization Futures LLC 2004 3
What Is the Future?
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2002 2004 2006 2008
Recent ActivitySelf-ReliantDependent
Today’s choices determine tomorrow’s results. Organisations that don’t grow die!!
May 2004 © Organization Futures LLC 2004 4
Total Organizational Fundraising©
Six step approach to the core capabilities of an organization for effective fundraising
1. Fundamental Principles of Fundraising
2. Internal Culture of Fundraising
3. Strategic Planning, Positioning and Fundraising
4. Organizational Ethics and Standards
5. Strategic Evaluation for Learning
6. Involvement and Accountability for Donors
May 2004 © Organization Futures LLC 2004 5
Strategic Thinking
Big, long term and high level thoughtsThoughts of how, not what or why
Reflection of something uniqueValue added that sets you apart from othersPrice / Quality / Innovation
Business strategies
Not operational plans or activities
May 2004 © Organization Futures LLC 2004 6
The Ashoka ExperimentCriteria for Selection
1. A new idea: Is this person possessed by a truly new idea for solving a public need?
2. Creativity: Is she or he creative both in goal setting and in problem solving?
3. Entrepreneurial quality: Can this person rest until his or her vision is the new pattern across society?
4. Social impact of the idea: How many people will be affected and how beneficial will the effect be?
5. Ethical fiber: Is this person totally honest and trustworthy? Would you instinctively feel safe relying on him/her if you were in danger?
Social entrepreneurs - nonprofit leaders - 1,000 Fellows from 35 countries since 1980. www.ashoka.org
May 2004 © Organization Futures LLC 2004 7
Tactical Organization
Pulling in allall directions at the same time
May 2004 © Organization Futures LLC 2004 8
Why Have a Strategic Fundraising Plan?
Most NGOs have a strategic plan for programmeA strategic plan for fundraising is just as important
Improve performanceUse resources wellFocus on critical issuesClarify future direction Get everyone working togetherTake control of eventsWeave through chaos rather than be blown by itRaise more money
May 2004 © Organization Futures LLC 2004 9
Strategic Organisation
Branches
Fundraising
Board and Executives
Programmes
All Staff
Pulling allall together toward the same visionTHE
NGO’S
VISI
ON
May 2004 © Organization Futures LLC 2004 10
Strategic and Operational Planning
You want to be here.
How do you get there?
You are here.
Hint: Use the Strategic Planning Worksheet!
May 2004 © Organization Futures LLC 2004 11
Strategy for Fundraising Strengthening internal capacity of NGOs to raise funds and other resources from local, county and national sources. Moving from ‘fundraising is proposal writing for foreign donors’ to the next stage of organizational development and diversified fundraising
local government contractsbusiness sponsorshipmembership fees fundraising eventspublic donation fees for servicerelated business income.
May 2004 © Organization Futures LLC 2004 12
Strategic Fundraising Planning (3-5 Years)
Vision Why we fundraise Stakeholders Whom we serve Mission What we do Strategic Positioning What makes us special Values and Culture How we behave Situation Assessment Where we are now Critical Issues What we must solve Key Goals Where we want to get Strategies How we move forward Benefits to Donors Why they support us
May 2004 © Organization Futures LLC 2004 13
Why Planning Fails 1
Lack of commitmentConfusing studies with plans - Plans require a decisionFailure to develop strategies tied to action plansLack of meaningful goals, objectivesLack of clear delegationFailure to see the scope of plansInability to put a plan into actionInability to communicate to staffLack of top management supportLack of supporting culture
May 2004 © Organization Futures LLC 2004 14
New Strategic PlanningRoutine New
1. Organization Vision Leader Vision
2. Mission Strategic Positioning
3. S W O T Stakeholder Assessment/Value
4. Program Culture Entrepreneurial Fundraising Culture
5. Market Penetration Market Development
6. Proposals Diversified Fundraising
7. Benign Board Expert & Fundraising Board
8. Mixed Roles Separate Board & Management
May 2004 © Organization Futures LLC 2004 15
More
Grazing sheep Hunting Wolf
9. Grant Development Product Development
10. Income Generating Projects for Nonprofits
Business Thinking for Social Marketing Ventures
11. Fulfilling Terms of Grant
Public Accountability
12. Evaluation for Donors Strategic Evaluation
13. Ignore Competitors Analyze, Benchmark, Share
14. Structure for Control Structure for Effectiveness
May 2004 © Organization Futures LLC 2004 16
What is Your Vision?
What value can you provide to society?What social needs could you meet?How can you motivate others?How can you articulate it?Why should others follow?
May 2004 © Organization Futures LLC 2004 17
Desired Results
What are your desired Long Term Results?
Think broadly from society’s perspective
Think broadly from your participants’ perspective
Think broadly from your donors’ perspective
The results have to be measurable
May 2004 © Organization Futures LLC 2004 18
Identifying Stakeholders (Whom We Serve)
Organisations that do not pay attention to stakeholders’ needs are soon in trouble!Who our stakeholders are?What we get from them?What demands they make?How they influence us?How they are satisfied?
May 2004 © Organization Futures LLC 2004 19
Expanding the Boundaries of NGOs
Key interest groups become larger, more complex.Beneficiaries are the first group to be identifiedVolunteers,family members, board and staffFoundations, corporationsGovernment officials Individuals in the public
All have their own agendas
It is up to you to meet themBeneficiaries
Volunteers
Donors
Government
Public
Staff
Beneficiaries
May 2004 © Organization Futures LLC 2004 21
Creating an Empowering Shared Mission Statement
Focuses on contribution, on worthwhile purposes that create a collective deep burning ‘Yes!’Comes from the heart of the organization, not from somewhere elseIs based on timeless principlesAddresses the needs of stakeholdersMotivates and inspires
May 2004 © Organization Futures LLC 2004 22
Identifying Core Values (How We Behave)
Core values are beliefs, norms, ideas that shape how an organisation carries out its missionThey influence activities within the organisation as well as with outside groupsHow we want to treat volunteers and donors
May 2004 © Organization Futures LLC 2004 23
Childreach CultureIdentifying and creating a “can do” culturePassion for the MissionObsession with GrowthCommitment to Customer Service Let everyone shine
Good results30,000 donors to 100,000 donors$10 to $30 million income100 staff to 75 staff
May 2004 © Organization Futures LLC 2004 24
Typical External Barriers to Growth
Recession and economic malaise
Worry about future
Private economy
Government cutbacks
Wealth concentrated
Lack of culture of giving and laws
Severe competition among NGOs
May 2004 © Organization Futures LLC 2004 25
Real Barriers to Fundraising Success
Not making the cause appealing
Not responding to your donors
Uninvolved top executives and board
Just hoping it works (not planning)
Not making it work (management)
Internal conflicts
Being afraid to ask
Lack of fundraising culture (the #1 issue)
May 2004 © Organization Futures LLC 2004 26
Our Fundraising Situation Assessment
Internal Strengths Weaknesses + - + - + - + -External Opportunities Threats + - + - + - + -
May 2004 © Organization Futures LLC 2004 27
Status Quo and Change
What to Change and What to keep
Best of the status quo•Keep and expand
Best of change•Adopt and expand
Worst of the status quo•Change
Worst of change•Avoid
May 2004 © Organization Futures LLC 2004 28
Critical Issues (What We Must Solve)
The major issues, with huge impact, for the next few years
Flows directly from our AI/SWOT analysis
Each impacts significantly on our ability to perform
We have some influence over it
The issues most in need to be addressed to perform well and survive
Serious problems if we fail to address them
May 2004 © Organization Futures LLC 2004 29
Fundraising Goals (Where We Want To Be)
General destinations on our missionProgramme funding needed in 5 yearsSources of funds in 5 years
Responses to the critical issuesRealistic but significant changeFit within the overall missionRespond to stakeholder expectations
Single focus, single key result for eachSpecify only the what (not the how or why)Written as a completed action
May 2004 © Organization Futures LLC 2004 30
Fundraising Strategies (How We Will Get There)
The road map to accomplish our goalsClear and logical explanation of exactly how, what path, what means we will followEach strategic statement is the basis for formulating objectives, activities and budgetsGuidelines for planning decisionsEstablishment of prioritiesAssignment of personnel Allocation of resources
May 2004 © Organization Futures LLC 2004 31
Mountain ClimbingGoal: Get to the top of the mountStrategy: Walk upObjectives: Climb 20% each dayActivities: Get financial sponsors
Select teamTrain hikersIdentify trails, 6 camps
Monitor: How are we doing?Blizzard happens
Manage: Change the trail, get a …
May 2004 © Organization Futures LLC 2004 32
Fundraising Strategies
1. Creating value for society2. Relying on one donor3. Growth as strategy4. Diversification of funding resources5. Developing new markets6. National image and reputation7. Uniqueness and competitive advantage8. Total Organization Fundraising ©9. Change and Organizational Development
May 2004 © Organization Futures LLC 2004 33
Uniqueness as Core Strategy
Why is unique important?
What makes you offer special? Better?
Why should I give to you rather than to ___?
What value do you add?
May 2004 © Organization Futures LLC 2004 34
Differentiation Matrix 1. Determine competitive differences 2. Choose what to emphasize
Develop Innovate Copy &Exploit & Lead Follow
Our strength
Their weakness
• David Clare
May 2004 © Organization Futures LLC 2004 35
National Image as Strategy
Name
Mission
Unique Identity
Benefits to Donors
Slogan
May 2004 © Organization Futures LLC 2004 36
Diversification as StrategyGrants from partners
Government contracts
Corporate sponsorship & grants
Profit making activities
Fees for services
Events
Individuals
Resource Mobilization
May 2004 © Organization Futures LLC 2004 37
Strategic PositioningBuilds on the program mission statementWhat we do in the program?
Includes the essential appeal to donorsWhat they value in us?
Includes our unique ‘value added’What makes us stand out?
Includes conclusion of differentiation analysisWhat we do better?
Considers barriers to entry or expansionWhat would stop us?
May 2004 © Organization Futures LLC 2004 38
Creating Value as Core Strategy
In business, profit is the reward for creating value.In nonprofits, what is the reward for creating value?Solving or ameliorating a significant social problemDelivering value to participants and beneficiariesDelivering value to donors and volunteersMaking better use of resources to get better resultsBuilding an organization to help moreFeeling good at the end of the day
May 2004 © Organization Futures LLC 2004 39
Marketing as Strategy1. Market Penetration
• Satisfy donor demand• Share the pie (0 sum game)• Competitors: Other NGOs• Get the money instead of other NGOs
2. Market Development• Create donor demand• Increase the pie (++ sum game)• Competitors: other uses of disposable income• Get the money instead of other uses
customer profile 80/20 rule competitor marketing
May 2004 © Organization Futures LLC 2004 40
Relying on GovernmentBenefits
1. It is easy to get synchronized with one donor2. You can develop a good relationship over time3. You have a low cost of getting the funds4. You have a chance to influence government as contractor5. You can focus on program not worrying about other funding
Drawbacks1. You may have to follow the government’s political approach2. You have to change the mission if the government changes3. You can quickly lose the funding if the government falls4. You generally operate in response to government RFPs5. You cannot easily engage in advocacy with the government
May 2004 © Organization Futures LLC 2004 41
Diversified Funding Benefits
1. Your funding will be more secure over time2. You can continue work even if one major donor goes away 3. With a portfolio of many donors, you have independence4. You have more control over your mission5. You have a public reputation and can influence opinion
Drawbacks1. It is harder to manage a portfolio of diversified funding2. You still have to meet the needs of various donor segments3. The costs of fundraising are much higher4. You face new responsibilities in planning and fundraising 5. You need staff and board members with more diverse skills
May 2004 © Organization Futures LLC 2004 42
Management by Objective
Set the objective with those responsibleDetermine activities to get thereEstablish responsibilities and deadlinesDevelop indicators of progressDetermine cost in time and moneyRevise the plan as you go alongRaise level of resultsReduce costsMake other changes to achieve results
Communicate, monitor and adjust
May 2004 © Organization Futures LLC 2004 43
Operational Fundraising Planning (12 Months)
Objectives Exactly where we want to be Activities What we will do day to day Responsibilities Who does the activity Deadlines When it will be completed Progress Indicators Steps to indicate progress Support/Budget Resources needed Management Monitoring, helping & correcting Projected Revenues Money, time and materials Organisation Chart Fundraising responsibilities Next Steps Actions to improve & implement
May 2004 © Organization Futures LLC 2004 44
Specific Objectives
ObjectiveActivity
Date to be accomplishedIndividual responsible
Progress on the way/changes
Result
May 2004 © Organization Futures LLC 2004 45
Operational PlanningFor each unit in the organization Objectives to be achieved How it contributes to the goals and value added Activities to achieve the objective Individual responsible Date to be accomplished Indicators of progress for monitoring Reporting and evaluation system Baseline data and inputs into the planning Resources, staffing and support needed Budget with income and expenditure
May 2004 © Organization Futures LLC 2004 46
4 Change ConditionsExternally Imposed Internally Imposed
C1 Most common
Group allowed latitude in implementation
Broad policy shifts/change in organizational mission
C2 Occurs sometimes
Group itself is initiating & implementing change
Changes in work design, resp.,goals, objectives, etc.
C3 Next most common
Demanding re: outcomes & implementation
Implementors must comply or suffer consequences
C4 Rare
Usually related to group norms & values—quick action
Group sees immediate threat & responds strongly
Negotiable
Non-Negotiable
May 2004 © Organization Futures LLC 2004 47
WIIFM?
What’s In It For Me?
Change is not good or bad—it simply is
Change itself is neutral
We influence change by our own beliefs, attitudes, assumptions, expectations, values
May 2004 © Organization Futures LLC 2004 48
What We Know..
2%Innovators
60%Cautious--But Can Be
BroughtOn Board
18%Early
Movers
18%Waiting
2%Resistors
20% will embrace change60% dubious—but can be brought along
20% resist—don’t spend much time here in early days
May 2004 © Organization Futures LLC 2004 49
Major Donor Cycle
The relationship cycle with major donors goes on and on and on and on.
IDENTIFICATION CULTIVATION
STEWARDSHIP SOLICITATION
May 2004 © Organization Futures LLC 2004 50
Working with a Major Donor
IdentifyResearchCultivateInquireAdaptAskThank - AppreciateResearch – Cultivate – Inquire – Adapt - Ask Again
May 2004 © Organization Futures LLC 2004 51
The Case for Support
Know your donor’s interests and need
Prepare the Case Statement
1. Who we are (credibility)
2. The needs we can meet1. The results we will get
3. How we can do it
4. How we will evaluate it
May 2004 © Organization Futures LLC 2004 52
Credibility Statement
• Why people should trust you• What would you produce to show them• Evidence of reliability• A paragraph – less than a page• Used in proposals, brochures and elevators• Draft key points now
May 2004 © Organization Futures LLC 2004 53
Key Elements in A Proposal
Cover Letter - Engage the DonorExecutive Summary- Best Selling PointsCredentials - ExpertiseStatement of the Need - The ProblemStatement of Results - The ResultsProject Description - The SolutionMethod of Evaluation - EffectivenessReporting - AccountabilityBudget - Efficiency
May 2004 © Organization Futures LLC 2004 54
How to Prepare a Winning Proposal
Analyse what the specific donor does and wantsDecide what to propose to meet this donor’s needsLearn about their deadlines, rules, requirementsEstablish direct personal contact with donor to learnGet the funds - start the program - do a good jobReport and evaluate to persuade the donor it was really of public benefitOn this basis, the donor and others will decide to fund you again in the future.
Lyuba Palyvoda, Counterpart Creative Center
May 2004 © Organization Futures LLC 2004 55
Open Society Foundation
Key elements for successNeedLarge scopeNational impactReplicabilitySustainabilityEvaluation
Dr. Adriana Dan
May 2004 © Organization Futures LLC 2004 56
The Donor Pyramid
Develop the relationship with donors over time
Move donors up the pyramid to larger gifts
Seek donors at all levels
A few really big gifts
Many major donors
Upgraded givers
Regular givers
Lots of small gifts
May 2004 © Organization Futures LLC 2004 57
80-20 Rule
Your lead donors are the most important.
20% of your donors will give you 80% of your income (average case)Several top donorsOther major donorsAll the other donors $ $ $
$ $ $ $ $$ $ $ $ $ $ $
May 2004 © Organization Futures LLC 2004 58
What Strategic Fundraisers Do
Research what donors like and don’t like about the organization and its work
Determine your value added and strategic positioning in the market place
Plan strategically with assessment and stakeholder analysis from a fundraising view
Advocate an organizational fundraising culture Develop a code of ethics for your organization Demand evaluations with lessons learned Develop new ways to provide value to donors
May 2004 © Organization Futures LLC 2004 59
Message: Who Are You?
Answer quickly and clearlyWhat is your mission?How do you help people?What makes you special?Why should I help?Why now?
Needs are greater; government spending cuts; taxesHelp meet society’s obligations; reduce costs to
society
May 2004 © Organization Futures LLC 2004 60
Events and Meetings
See an event as developing a relationship
Plan the desired outcome of each contact
Plan the follow up of contacts
Work the room
Get names, addresses and other information
Follow up contacts by staff with board support
May 2004 © Organization Futures LLC 2004 61
Fundraising Systems1. Data Management System
2. Desk Research System
3. Prospect Management System
4. Staff Organization and Revised Job Descriptions
5. Organizational Culture and Priorities
6. Board Roles and Responsibilities in Funding
7. Scripts and Role Playing
May 2004 © Organization Futures LLC 2004 62
Prospect Management1. Research for information on prospects2. Selection of top prospects3. Review of top prospects by Board and GMT4. Contacts with current donors about other donors5. Actions identified for each top prospect6. Follow up to get actions implemented by __(date)7. Meetings or calls for further information8. Ongoing cultivation at meetings, conferences, etc9. Feedback and coordination10. Contact and the ‘ask’ by the best contact11. Proposal tailored to the specific donor’s interests
May 2004 © Organization Futures LLC 2004 63
Assessment of Donors
Workshop to assess benefits and problems
1. Foreign donors 10. Interest Groups
2. National government 11. Civic Associations
3. Local government 12. Churches
4. Foundations 13. Businesses
5. Rich people 14. Events
6. Average donors 15. Activities
7. Small Donors 16. Fees for Service
8. Members 17. Business ventures
9. Participants 18. Other activities
May 2004 © Organization Futures LLC 2004 64
Assessment of Methods
Workshop to assess benefits and problems
1. New Strategy 10. Product Development
2. Organization Culture 11. Brand Development
3. Board Development 12. Public Relations
4. Fundraising Committee 13. Community Outreach
5. Honorary Board 14. Education and Advocacy
6. Executive Role 15. Lobbying
7. Code of Ethics 16. Message
8. Staff Fundraiser 17. Elevator Speech
9. Benchmarking 18. Website
May 2004 © Organization Futures LLC 2004 65
Childreach Growth
ChildReach tripled its income & donors.
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Actual
May 2004 © Organization Futures LLC 2004 66
Organization Futures LLC
Consultancy to help organizations assure their futureAnalytic Studies to determine needs and actionConsulting in Strategic PlanningTeam, Management and Board DevelopmentFundraising and Skills Training Workshops
Ken Phillips, Fundraising and Capacity Building Rebecca Stiles Phillips, Management and Leadership Organization Futures LLC
32 Wykeham Road, Washington, CT 06793 USA Tel +1 860 868 9260 Fax +1 860 868 9261 NGOFUTURES@aol.com and KPhillips@OrganizationFutures.com www.organizationfutures.com