Raising Money to Do Economic Development
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Transcript of Raising Money to Do Economic Development
Thayr Richey, President
SDG
6-12-14 IEDA Summer
Conference
RAISING MONEY TO DO ECONOMIC
DEVELOPMENT
Daviess County’s ED Commission is nearing the end of its $1M capital campaign.
The Capital Region EDC will launch a new $3M fundraising campaign this spring to pay for economic development initiatives over the next four years.
Columbus 2020 sets $30M fundraising goal to support economic development.
EVERY NOT-FOR-PROFIT NEEDS MONEY
Indiana communities are caught between the loss of tens of thousands of high-paying, unionized manufacturing jobs that used to contribute to social service businesses.
At the same time we’re still struggling to recover from the “Great Recession.”
THE DOUBLE WHAMMY
Your choice:
Economic development
or
County ambulance service
NOT ENOUGH MONEY FOR EVERYONE
Abate Arts Homeless Animal shelters Sports Libraries 4H Band Food banks
Shelters for abused women
Churches Lions Elks Optimists Hospital foundations Literacy programs Boys & Girls clubs Services for seniors
IN ONE NORMAL-SIZED INDIANA COUNTY
There were over 700 N-f-Ps listed
HOW LEDOS CAN COMPETE
Your track record
New Opportunities
What similar communities are doing
Fear
BUILD ON
Phase I Specify what the funding will pay for (benefits) Prepare LEDO board and staff for the campaign
Determine income needs Create the “ask” Have staff develop materials for the campaign (with
professional marketing/PR help if needed) Ensure that each board member understands his/her role in
the process Identify current and past donors
By donation category By type of organization
Government Business
For-profit Not-for-profit
Individual/Family Review probability of donation renewal
A CLEAR, SIMPLE PLAN IS ESSENTIAL
Assign specific board member to each established prospect Research new prospective donors Assign specific board member to each prospective donor Depending on how formal the plan, you might want to create a
communications strategy for the plan and have a resource development kickoff meeting
Phase II Make the “ask” of dependable established donors For new donors, some LEDOs have small meetings in which the
LEDO president gives a brief presentation on the goals and objectives, the competition, and the need for funding
Then or shortly after, the board members make the “ask”
THE PLAN - CONTINUED
Most people would prefer not to do this
THE KING-ASKS-KINGS SYNDROMEWhen the LEDO president asks, he/she is often
perceived as seeking money to keep a job
WHY SHOULD BOARD MEMBERS HAVE TO ASK FOR MONEY
For businesses it depends on the size and type: Gold Silver Etc.
Levels of funding can also be tied to donor benefits
For individuals, it depends on their commitment to the long-term vitality of the community
Ask for a three-year commitment
Should you ask basic employers for donations?
HOW MUCH DO YOU ASK FOR?
1. People respond to danger2. The danger for your community is that – in an
economy that is both making a fundamental shift and highly competitive – the community will lose its economic reason for existence
3. The solution is your organization’s ability to grow established employers and recruit new ones
4. These companies employ local businesses’ customers
5. These companies are the potential employers of your donors’ children and grandchildren
MAKING THE ASK
FOCUS ON TOUGH COMPETITION
For Example:Gold – has a board
membership
Silver – Can attend quarterly and annual meetings
Bronze – can attend annual meetings
THEN SELL THE SMALL BENEFITS
1.What is the problem that drives your LEDO?
a.30 secondsb.60 secondsc.90 seconds
2.What does your LEDO do that solves the problem?
a.30 secondsb.60 secondsc.90 seconds
THE ELEVATOR SPEECHES
1. A greater focus on one-time outside grants for special projectsa. USDA-RD to provide RLFsb. EDA for key infrastructure leverage
2. For those 501(c)6’,s LEDOs are forming additional 501(c)3’s
3. LEDOs are also rethinking the board structure to bring in additional “members” of the corporation; these members then elect a smaller board of directors
4. A hot trend that calls for more revenue is the creation of “deal-closing” funds
CURRENT TRENDS IN LEDO RESOURCE DEVELOPMENT
How difficult will it be to raise that 2015 budget?
How many of your board members will be willing to make the ask?
What has worked in the past for you?
How formal should the resource development plan be in your community?
DISCUSSION