Presented by Natalie Lamberjack, CFRE, Senior Consultant, The - - PowerPoint PPT Presentation

Developing Annual and Long-Range Fundraising Plans

Presented by Natalie Lamberjack, CFRE, Senior Consultant, The Collins Group James Plourde, CFRE, Senior Consultant, The Collins Group

Nonprofit Association of Oregon June 1, 2012

The Collins Group

Agenda for the Day

 Context: Articulating the role of philanthropy and building a culture for successful fundraising

– Short break (10:15-10:30 am)

 Crafting the plan: Goal setting, donor constituencies, gift charts and fundraising strategies

– Lunch (12:00-1:00 pm)

 Mapping out strategy  More planning: Calendaring, roles, budget

– Short break (2:45-3:00 pm)

 Working the plan: Evaluating programs, reporting, getting it done

Role of Philanthropy

Successful and Sustainable Fund Development

Development Infrastructure Marketing & Communications Donor Management & Stewardship Development Program Activities Board & Volunteers Culture of Philanthropy Organizational Planning Mission Fulfillment

Culture of Philanthropy

Everyone Understands What Philanthropy Makes Possible Everyone Understands Their Role in Development Development is Engaged in Direction-Setting Development is Donor- Centered

Organizational Planning

 What kinds of planning are necessary for fundraising success?  What is the purpose of the development plan?  Who should help craft it? Who should understand it?

Philanthropic Case for Support

Why do you exist? Why are you worthy of donor dollars?  Relevance and context for your work

– What are the current/emerging external needs you are addressing?

 Leadership in your program/service area  The need for philanthropy – and how contributed income is used  This year’s focus

– Are priorities or programs need changing, expanding, starting up?

 Community benefit – your outcomes, impact, success

Building Your Case

Words of wisdom

“Donors do not give to organizations because

• rganizations have needs; they give because
• rganizations meet needs.”
• Kay Sprinkel Grace, “Beyond Fundraising”

“People give money to solve problems. And the problem is never that your organization needs more money.”

• Granstmanship training, Jan. 1992

Building Your Case

The BIG question: How are you making the world (or your state, city, neighborhood) a better place?  What is the problem your non-profit is addressing  How will the money raised be used to impact/improve the problem.  Tie dollars to outcomes  Be bold, but don’t over-reach.

Building Your Case

What is the relevance of your organization from a potential donor’s point of view?  Ask your donors why they give to you  Ask the people you serve why they come  Find emerging themes  Build those into your case  Get an outsider to read and comment

Development Plan Overview

 Mission and strategic philanthropic goals  Current case for support  Development goals and expenses, FY 20XX-20XX  Assumptions

Development Plan Outline

 Overview and goals  Fundraising plan by constituency  Calendar of activities  Roles and responsibilities  Supporting pieces  Alternative ways of building your plan

Fundraising Plan by Constituency

 Who are your most likely supporters?  Board, Foundations, Businesses, Individuals and Major Donors, others?  Why are they invested? What are their motivators?

Fundraising Plan by Constituency

 Goals

– Improve upon prior years’ performance – Look for opportunities for growth

 Gift Chart  Strategies and activities

Gift Charts

Board of Directors Annual Fundraising Goals FY ’09 FY ’10 FY ’11 # of gifts Cumulative Total # of gifts Cumulative Total # of gifts Cumulative Total $50,000 $35,000 $25,000 1 $25,000 1 $25,000 $15,000 2 $30,000 1 $15,000 2 $30,000 $10,000 1 $10,000 2 $20,000 2 $20,000 $5,000 3 $15,000 3 $15,000 4 $20,000 $1,000 5 $5,000 5 $5,000 5 $5,000 Total: 11 $60,000 12 $80,000 14 $100,000

Strategies the Donor Cycle

Meaningful Engagement

Identify (Acquire) Cultivate (Engage and Inform) Solicit (Invite Support) Steward (Recognize and Communicate)

Who are our best prospects? How do we find them? How do they find us? How can we connect donors to our work and our successes? What else can we do to get prospects engaged? What methods should we use for asking? How can people make gifts? What are we asking people to support? How do donors wish to be recognized? What information do donors want? What special experiences we provide?

Acquisition

 Identification, qualification, prioritization  Collecting contacts from board, staff, and other supporters  Reviewing donor lists of similar organizations  Friendraiser events; introductory tours  Buying and trading lists for direct mail  Others?

How to Identify

Linkage (personal connections to staff/volunteers) Interest (affinity for mission) Ability (financial capacity)

 Think of concentric circles: start with those closest to you

How to Prioritize

Oprah Winfrey

Major Gifts Annual Gifts Planned Gifts

Interest Low High Ability High Low

Cultivation

Mission touch-points  Special events  Tours  Engagement with clients or staff  “Pet the whale” opportunities

Cultivation

In one-on-one encounters with donors  Ask why they support your cause  Ask what other causes they support  Ask them about themselves  Then….. Listen Listen Listen!

Solicitation

Major Gift Prospect:  Natural Partner  Weave in knowledge of donor’s interests  Vision orientation  Project orientation  Amount-specific or range  Acknowledgment/naming opportunities

Solicitation

Annual Giving  Mass appeal  Direct mail/phone  Many gifts at smaller levels  Donor acquisition  Beginning or maintaining the relationship  Compelling case still vital!

Solicitation Strategies

Establish giving protocol. Strategies to consider:  All or nothing?  To designate or to not designate. Pros and cons. Cons –  Additional layer of record-keeping  Additional layer of accountability  Can you deliver on your promise?

Solicitation Strategies

Pros –  More donor-focused  Educates on various components of your service  Tags donors’ interest for future projects (but you’ve gotta keep track!) One important caveat!  Designation categories<Budget Categories

Stewardship

Stewardship

The art of the Thank-you  Personal notes/calls from board members  Show don’t tell how gift has been used  Openings/reveals of how gift used  Preparation for the next gift  A step on the journey; not the destination

Sample Stewardship Matrix

Goals Under $1000 $1000 - $4,999 $5,000 + Founder/Sustainer Circles

Acknowledge Thank you letter w/in 5 business days of receipt Thank you letter w/in 2 business days of receipt Thank you letter w/in 2 business days of receipt Thank you letter w/in 2 business days of receipt Acknowledge Thank you call (for new $500+) from Development Associate Thank you call from VP Resource Development or Board Member Thank you call from VP Leadership Gifts or Board Member (new gifts) Thank you call from President and/or Board Member Recognize Annual Report Listing w/hand written President notes Annual Report Listing w/hand written President notes Report/inform Newsletter Newsletter Newsletter Newsletter Cultivate Tour Invites from Annual Fund Manager as appropriate Tour invites from Annual Fund Manager as appropriate Tour invites from VP- Leadership Gifts Tour invites from President – combined with lunch or coffee

Mapping Out Board Strategies

 Use the worksheet to set goals  Use a gift chart to understand what is needed to reach your goals  Develop strategies to engage and invite larger investments

Calendar

Activities January February March April May June July August September October November December

Invitations to special events/cultivation events Speakers' bureau events/workplace giving events Table Captain/Sponorship event prior to Breakfast or Lunch events Cultivation events Ongoing cultivation meetings Seattle Breakfast event Mother's Day Appeal Year end appeal Ongoing donor solicitation meetings Delivering annual glass hearts Special communications to Major Donors Ongoing special thank you calls to major donors

ACQUISITION CULTIVATION SOLICITATION STEWARDSHIP

Major Gifts Activities Calendar

Roles

Fundraising Roles and Responsibilities Executive Director Board of Directors Director of Development Development Assistant “Program” Staff Planning Planning and Strategy Development Key player Approve goals Primary management Input Implementation Foundation/Corporate Relations: Identification, Management, Grantwriting, Reporting Key player Oversight Support Support Major-Donor Management Oversight Primary manager Support Personal Meetings and Solicitations Key player Participate Primary manager; key player Online, E-mail and Membership appeals Oversight Oversight Support Support Donor Stewardship and Communications Key player Primary manager Support Key player

ED/CEO Roles

 Convey the mission and vision of the organization  Address community and business groups  Provide leadership and unity among staff and volunteers  Provide recognition to volunteers  With support, handle a portfolio of high level donors and prospects (Who expects to get the CEO’s time?)  Make a gift; show leadership’s commitment

Devo Staff Roles

 Organize and plan fundraising activities and events  Collaborate with and guide staff and volunteers  Provide materials, training, support, and tools  Maintain donor records and reports  Help set the strategy and approach for top donors  Maintain a portfolio of donors  Communicate successes promptly and help to keep the team engaged and motivated

Board Roles

 Be visible leaders of campaigns or fundraising drives  Serve on a fundraising committee  Host a fundraising event  Serve as a spokesperson  Identify prospective donors; share contacts  Attend events and help cultivate donors  Make phone calls to follow up requests  Call or write notes to thank donors  Personally solicit peers, employers, or family  Give before asking others

Board Involvement

Tools for involving your board  Each board member should receive a personal solicitation for the AF gift  Gives them an “in-service” on how to solicit others  Sharpens your message

Board Involvement

The rule of One Thing. Set as expectation that each board member will do one thing to move the AF effort forward.  Host a gathering; solicit one person/couple; invite one person/couple to an event, etc.  Staffing intensive  One thing must be accomplished or intentionally abandoned before moving on to the next  Address their fears

Board Involvement

Grease the skids  Pre-condition success  Give them an easy win  Gene and Zari

Budget

 Staffing  Operations  Activities and events  Technology  Communications – design, printing, mailing  Professional Development  Travel

ROI and Benchmarking

 Determining costs for your program, activities  Are they are in-line with industry standards?

Fundraising Costs by Method (to raise $1) Benchmark for renewal direct mail $0.20 - $0.25 Benchmark for acquisition direct mail $1.00-$1.25 Benchmark for grants program $0.20 Benchmark for personal major gifts solicitations $0.10-$0.20 Benchmark for special events up to $0.50

Sources: James M. Greenfield, Fund-Raising Cost Effectiveness; Direct Marketing Association

Reporting and Dashboards

 Dollars: By constituency, fundraising activity, gift level, by month  Donors: Number, acquisition, retention, upgrade, lapsed  AFP’s Fundraising Effectiveness Project, gains & losses  Activities: Cultivation, solicitation, stewardship  Volunteer activity  Comparisons: To your goals, past years, peers  Other “health” indicators

Managing time for Success

The 7 Habits of Highly Effective People, Stephen Covey

Wrap-up

Take-aways:  What one, two or three things can you commit to taking back to the office and implement tomorrow?

Resources

 Donor Focused Strategies for Annual Giving, Karla A. Williams, Aspen’s Fundraising Series for the 21st Century.  Donor Centered Fundraising, Penelope Burk, Burk & Associates Ltd.

Contact Us

The Collins Group www.collinsgroup.com Natalie Lamberjack, CFRE nataliel@collinsgroup.com James Plourde jamesp@collinsgroup.com