Developing Your Resource Development Plan PPT (1) Final.pdf · Prospecting (events, auctions,...
Transcript of Developing Your Resource Development Plan PPT (1) Final.pdf · Prospecting (events, auctions,...
Developing Your Resource Development PlanMIE Fundraising Conference July 25, 2019Aly Sterling, President | Emily Croak, Advisor
WELCOME
3
➢ 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
4
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
5
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.
6
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 .
7
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 . )
9
9
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
11
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)
12
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.
14
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)
17
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
18
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
19
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.
20
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?
22
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…
23
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
24
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.
25
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℠
27
What goes into a Philanthropy Blueprint?
COMMUNICATION
ANNUAL GIFTS
MAJOR GIFTSLEGACY GIFTS
STEWARDSHIPYOUR
PHILANTHROPY
BLUEPRINTSM
28
The Donor Pyramid
LEGACYGIFTS
CAPITAL CAMPAIGNS
MAJOR GIFTS
THE ANNUAL FUND
PROSPECTING
29
Donor Bill of Rights
Before We Jump In,
A Word About Prospecting
31
Essential Fundraising Elements: Prospecting
Identification of prospects begins with…
Connecting with your board’s network
Direct mail
Mission-based fundraising events
Prospecting events
32
Essential Fundraising Elements: Prospecting
My Treasure Map
Me _____
Family, Friends & Neighbors
Work
Church & Worship
Clubs & OrganizationsFoundations
Legal and Non-Legal
Professionals
Vendors & Suppliers
Communication
34
#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
35
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
37
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
38
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
40
Capacity – Affinity – Relationship
Capacity
RelationshipAffinity
41
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
42
Essential Fundraising Elements: Major Gifts
Targets for Major Gifts:
Individuals – Legal and Non-Legal
Corporate Partnerships (including General Counsel leads)
Foundations
Community Partners
43
Essential Fundraising Elements: Major Gifts
The 5 “I’s”
Identification
Information
Interest
Involvement
Investment
44
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?
45
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
47
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
49
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
50
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
51
Essential Fundraising Elements: Stewardship
Board Engagement 101
53
What is the board’s role
in fundraising?
54
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
55Continued on next page…
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
58
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
59
59
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
60
➢ 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