Perfect Together: Program & Fundraising

Part II: The Case for an Annual Fundraising Case

PUT BIG IDEAS IN MOTION WITH US.

RecapLast time, we talked about ways to improve program outcomes & fundraising results, including● Why and How Program and Fundraising need to get along!● Ways to clarify program logic and goals● Moving from measure outputs to outcomes● How to develop a logic model for your programs

In case you missed the webinar, visit “Prior Events” on the NAVSO website.

For more, check our blog.

For free tools, including fundraising diagnostics, visit the tools page on our website.

AgendaI. Welcome to The Case for an Annual

Fundraising Case webinar!

II. What is a Fundraising Case anyway?

III. So what? Why do you need one for annual fundraising?

IV. Fundraising Case elements, and how they work together

V. Tips on how to develop your own Fundraising Case

VI. Q & A

Goals for Today

● Enable you to raise more money by learning how to build a case for annual fundraising.

● Learn how a well-articulated fundraising case creates fundraising opportunities and greater internal alignment between your team, board and donors.

● Know how to implement a good process to develop your case statement, so that your colleagues and stakeholders participate and “buy in” to the final version.

What Were You Thinking?

Survey Results

What is a Fundraising Case, Anyway?

What is a Fundraising Case, Anyway?

● The compelling story of where we have been, our vision for the future, and how we will achieve it

● A written narrative containing these key elements (slide deck comes later!)1. The Vision 4. The Cost2. Challenge (aka need) 5. Why Now?3. The Plan 6. Call to Action (giving & engagement opportunities)

● Aimed at high level donors/prospects and board members○ Also used in high-impact messaging for grassroots supporters○ Can be converted into a slide deck, foundation proposal, major gift proposal, and more

Soooo….Why Do You Need One?

Why do you need an annual fundraising case?

You’ve heard of having one for capital campaigns. We’re here to say: they’re incredibly useful for annual fundraising, too. ● It Raises More Money!! Not to put too fine a point on it...

● If you use a collaborative process to develop it, this will help align program, fundraising and donor interests

● Directs fundraising effort at your organization’s current priorities

Why do you need an annual fundraising case?

● Develops new thinking about program to share with donors

● Creates positive dialogue with board members, funders and stakeholders

● Provides a framework for fundraising across all segments○ Board members newly energized and focused○ New volunteers brought in to raise funds ○ Foundation general operating proposal practically written; new initiatives too○ Public version can be shared with individual major donors, companies and foundations○ Messaging can be used to revitalize gala themes, grassroots fundraising

Why do you need an annual fundraising case?

● Not to repeat ourselves, but a good case will raise more money!

Success Story:Fundraising Case Helps Raise $13 million in 18 Months

The Problem

Despite India’s relative success in establishing cataract surgery, the country had no tertiary-level pediatric eye care services in a country with 400 million children. Orbis, an international eyecare nonprofit, could help but needed to know what to do.

The Solution

Developed the Orbis India Childhood Blindness Initiative, designed to provide the country’s first-ever tertiary eye care services

● Partnered with the India program director to design and scale the program, which garnered Indian government support.● Created an $18 million major gifts case that was used to raise individual, foundation and corporate gifts in the United States,

United Kingdom, and Hong Kong● $13 million was raised over a two year period to develop 35 of 50 planned pediatric eye care centers in a country that did

not have any facilities prior to Orbis’s work● 140 million children Indian children now have access to tertiary eye care services because of this initiative

Major Elements of a Fundraising Case

The major elements of a fundraising case

The Situation: A Big Think Tank’s Book Publishing Unit

● Very successful Washington think tank, around for decades● Has had book publishing unit for almost as long● Book publishing unit runs a deficit, despite the very occasional best seller● Viewed internally as an albatross

But is it?

The major elements of a fundraising case

The Big Picture: A Think Tank’s Book Publishing Unit

But is it an albatross? Nope...● Counsel hired to assess nonprofit publishing & develop case● Turns out: most major nonprofit publishing houses (Oxford, U Chicago)

raise money, have endowments AND sell books● The majors have enough capital to publish best sellers, which in turn

subsidize more scholarly books, while still operating in black● It turns out “the deficit” is an insufficient capital investment● With $500,000 more invested per year, the Press can turn a profit in 3 years

The major elements of a fundraising case

● Vision ● Challenge● The Plan● The Cost● Why Now● Call to Action (funding and volunteer opportunities)

The major elements of a fundraising case

The Vision

● Concisely lays out the argument for the future● Mentions past, successes to date● Introduces “the big idea”: what needs to be done

The Vision

What’s the vision? Lay it out clearly, and make it exciting for donors.

The major elements of a fundraising case

The Challenge

● Discusses the External Need○ Draws DIRECTLY from program team

● Frames the organization’s competitive position in light of the vision

● Describes the organization’s needs

The ChallengeDevelop the story: Competitors are raising big dollars and selling big books.

We’re in better shape than we were, but still not competing.

The ChallengeDevelop the story…But we COULD compete and even turn a profit, IF we have the “startup” resources.

The major elements of a fundraising case

The Plan

● Describe the key program initiatives ○ The things that will make the vision a reality○ Written in narrative, but cover SMART○ Emphasis on outcomes○ Draws DIRECTLY from the program plan

The major elements of a fundraising case

The Plan, Cont’d

● Sketch the “how” of fundraising plan (not the $ target)○ Usually: Engage major donors by introducing the new vision and plan○ Usually: Strengthen board, engage new volunteers

The PlanPart I. With $$$ raised, we’ll publish best sellers, go digital, publish rising new stars and more.

Part II. To do it, we’ll need a new fundraising campaign, volunteers and donor support

The Plan

Question

We’re sure you’ve been thinking about how this applies to your organization.

Does anyone have an example or two to share?

The major elements of a fundraising case

The Cost

● Describe the investment required○ Break down by initiative○ Provide context (in relation to current investment, cost effectiveness,

information on scaling, etc.)

The CostWhat’s the overall annual budget?And how much do these initiatives cost anyway?

The major elements of a fundraising case

Why Now?

● Tough question. If you can’t answer it…you’re in trouble!● Urgency must be there

○ Need to meet new need ○ Urgently need to improve on outcomes○ Need to scale to meet need

Why Now?Both URGENCY and the OPPORTUNITY are communicated.

The major elements of a fundraising case

Call to Action● Invite the reader to join you by funding an initiative and/or serve as a

volunteer fundraiser

● Describe the key funding initiatives in terms of what they will do, and cost○ It’s good to provide a range of options within an initiative

■ $500,000 to fund a named scholarship program ■ $5,000 to fund a single one year scholarship

● Describe the volunteer opportunities

Call to ActionAsk board members, volunteers, and leading donors to support this case.

Provide them with a list of great naming opportunities. Tell them about the amazing things their dollars will do.

Note: Once key volunteer leaders are engaged, definitely add their names to the case.

Why? Credibility.

Call to Action

Thought Exercise

How would this approach translate to your own program?

Let’s hear from you...

Recap: Major Elements of a Fundraising Case

● There are many models. Choose the one that works best.● An annual fundraising case is dedicated to increasing annual resources for

current programs and new initiatives.● Time horizon is usually two to three years● A good case will

○ Direct fundraising toward priority initiatives○ Help you build improved board and volunteer relationships○ Reinvigorate your relationships with donors○ Open up opportunities with new funders

Practical Tips for Developing Your Case

Tips for developing your Fundraising Case

Engage your development & program teams to develop it ○ Assign a workgroup, a team leader, and a writer○ Have them report periodically to c-level and your entire team○ Don’t overtax: Consider giving several months to complete the work○ If you have the resources, consider outsourcing case development, but still

assign a workgroup

Why? Higher revenue & greater internal alignment

Tips for developing your Fundraising Case

Obtain board and stakeholder feedback● Share early versions with key leaders to obtain feedback & build support● Highlight changes made due to feedback● Consider hiring outside counsel to interview board, stakeholders re

○ The soundness of the case○ Their willingness to provide financial & leadership support (by asking others to donate, etc.)

Why? Creating enthusiasm & alignment will help open doors to new donors and new $.

Q&A / Wrap up

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