AdNet Conference 2014 Trends, Models, and Strategies in Community Foundation Fundraising Kathryn W. Miree & Associates, Inc.
Trends, Models, and Strategies in Community Foundation Fundraising Successful community foundation fundraising programs are driven by: � Strategic donor engagement � Solid partnerships with those donors � And clear communication about how the foundation impacts their giving
Trends, Models, and Strategies in Community Foundation Fundraising In this session we’ll: � Look at the culture � Look at the trends � Look at the models � Pull it together to create a goal-driven plan
Are Community Foundations Fundraisers?
The Lack of Clarity on the Fundraising Rule Is it appropriate or necessary for a community foundation to raise funds? � There are some foundations with no development staff at all, others have development staff who are responsive, and others have active, outward- facing development staff � Ambivalence and lack of clarity are big barriers to success.
The Cultural Divide Why do we see this culture? � The foundation did not want to compete with local nonprofits � The foundation did not feel it was appropriate � What is there to fundraise around? � They are a service organization representing all charitable interests � Fundraising would increase costs (and decrease grants)
The Confusing Messages to Donors Donors may have received conflicting messages about giving - or no messages at all. � Sometimes the community foundation messages focus on types of funds - products - or gift options. � Often the message is on how the foundation works. � These messages focus on the foundation - not the donor.
The Changes in the Charitable Environment that Changed the Conversation
DJIA S & P 500 NASDAQ 1999 25.22% 19.53% 85.50% 2000 -6.18% -10.14% -29.29% 2001 -7.10% -13.09% -21.05% 2002 -16.76% -23.37% -31.53% 2003 25.32% 26.38% 50.01% 2004 3.15% 8.99% 8.59% 2005 -.61% 3.0% 1.37% 2006 16.29% 13.62% 9.52% 2007 6.4% 3.5% 9.8% 2008 -33.8% -38.5% -40.5% 2009 18.8% 23.5% 43.9% 2010 11.0% 12.8% 16.9% 2011 5.5% 0% -1.8% 2012 7.3% 13.4% 15.9% 2013 26.5% 29.6% 38.3%
Other Economic Factors The prime rate has been 3.25% since 2009 � There has been a dramatic and continuing decline in Federal, State, and local budgets which only began to reverse in FY 2013. Programs most often cut during the downturn include: public health, programs for the elderly and disabled, colleges and universities, and state work force
An Increased Need As individuals lost their jobs, and state and federal services were reduced in some areas, the need for charitable services increased. � The Nonprofit Finance Fund in 2013 found 80% of the nonprofits surveyed were experiencing increased demand for the 6th year in a row. � 55% were unable to meet demands.
The Internet, and a More Informed Group of Donors Donors are more educated about gift options � Resources for grantmaking, resources for philanthropic advice, resources for giving � Other entities offer donor advised funds � Other entities offer endowments with flexibility
The Fundraising Trends
Trend #1: The Proactive Pursuit of Permanent Funds Driven by initiatives, a realization of community need, and need for foundation stability � Transactional Opportunities (mergers & acquisitions, real estate sales, retirement) � Estate Gifts � Capital Campaigns
Trend #2: More Focus on the Case for Donor Investment The case for donor support is critical - but it is really not the case for “support” but the case for donor “investment” � The most effective case statements are: � Donor centric � Compelling and visionary � Emphasize the unique elements of the foundation as they relate to the donor
Trend #2: More Focus on the Case for Donor Investment The most effective case statements are not about: � The foundation’s structure � The fund options � The foundation’s needs and goals � They focus squarely on the donor and the value the foundation brings to the table.
Trend #2: More Focus on the Case for Donor Investment The statement should be visionary. � Every individual - rich or poor - should understand they have the power to change the world. � The statement should inspire them to invest in the community through the foundation.
Trend #3: Engaging Donors as Partners in the Foundation’s Success Involving donors with grants and initiatives � Community initiatives � Zero to Five Initiative � Group Violence Prevention � Affinity funds � Catalyst Fund
Trend #4: Recognizing the Remarkable Platform Foundation platform’s value is in solving problems and/or meeting needs: � Oversight � Accountability � Results/outcome oriented grant making � Multiple charities � Knowledge of community
Trend #4: Recognizing the Remarkable Platform The foundation also has a deep knowledge of the community through years of investment, research, and collaboration. � Reducing the foundation to a series of funds makes it a commodity - and reduces the conversation to fees. � Tell the story through the donor’s eyes!
Trend #5: Engaging Advisors More Effectively Advisors are the gatekeepers for your donors. � Traditional source of referrals for community foundation. � Review your bequests - how many came from donors unrelated to the foundation?
Community Foundation Models
The Three Primary Models The “We’re Not Fundraiser’s” Model � The “We’re Here to Help” Model � The “You Can Change the Community; We Want to Work With You” Model
Key Fundraising Strategies
Use Data and Analytics to Identify Opportunities You must make data a priority: � Make sure the data management system has capacity � Establish clear standards � Be vigilant about quality � Move all donor data to a single platform
Use Data and Analytics to Identify Opportunities Maximize the value of the data: � Ensure there are tools to extract and create reports. � Engage in training for all development staff. � Use business intelligence to guide and measure work and strategies.
Engage Current Donors and Those Who Interact with the Foundation Greatest barrier is helping donors and prospects understand the foundation’s role and value. � Donors who see the work first hand are more likely to understand the role and impact of the foundation and make an additional investment.
Engage Current Donors and Those Who Interact with the Foundation Donor advised fund donors � Donors who join the foundation in grant making � Non-donor advisors � Board members and former board members � Non-board committee members
Engage Current Donors and Those Who Interact with the Foundation Staff � Executive leadership of corporate partners � What other ways do individuals come in contact with the foundation?
Engage Donors Around Issues Early Years Count Education Initiative � Senior Housing Initiative � South Bend Group Violence Intervention � ArtsEverywhere Initiative
Engage Donors Around Issues Initiatives generally involve a collaboration of donors. � Participation takes investors to a higher level of understanding of the moving parts in solving problems.
Engage the Professional Community (in a Meaningful Way) Stay focused on the professional. � Interaction should focus on: � Solving problems for their clients � Their work � Their needs
Engage the Professional Community (in a Meaningful Way) Identify the estate planning professionals in the community � Learn more about them and their practice. � Send them periodic information about donors, foundation initiatives, things that relate to their practice � Make it easy to contact the foundation
Engage the Professional Community (in a Meaningful Way) Provide info on the foundation’s website: � Fund options and fees � Sample documents � Set regular outreach meetings - in firms or one on one
Engage the Professional Community (in a Meaningful Way) The conversation: � When did you first learn about the foundation? � What is the foundation’s greatest value in your practice? � Would could we provide you that would make us more helpful to you?
Engage the Professional Community (in a Meaningful Way) The conversation: � What are the biggest issues your clients struggle with in their current giving? � Tell me more about your practice and the type of work you do.
Engage the Professional Community (in a Meaningful Way) - Ways the Foundation Can Help Flexible, accountable, dynamic platform � Create funds for entities, groups of entities, or purpose � Provide wide array of gift vehicles and accept range of assets � Provide charitable calculations � Family philanthropy
Engage the Professional Community (in a Meaningful Way) Complete the Advisor Profile Form � Ask clients about charitable goals in the planning process: � Do you have charities you support? � Would you like to include any of them in your plans? � If I could show you how to move taxes to charity, would you be interested in exploring that?
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