Trends, Models, and Strategies in Community Foundation Fundraising - - PowerPoint PPT Presentation

Trends, Models, and Strategies in Community Foundation Fundraising

Kathryn W. Miree & Associates, Inc.

AdNet Conference 2014

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%

• f 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

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 #1: The Proactive Pursuit of Permanent Funds

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

• f donors.

Participation takes investors to a higher level

• f 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

• ne 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?

Engage the Professional Community (in a Meaningful Way)

Ask them to: Call in the planning process if they are creating a fund through the foundation. Help educate their clients and the community about the foundation’s role. Serve as ambassadors and advocates.

Engage the Board in Fundraising

The role of the board: Community leadership Vision Ambassadors Donors

Create a Results Framework for Your Fundraising Program

Key Elements of the Plan

The Development Platform Determine key data for donors, advisors, gifts Evaluate data management system Develop and adopt data management policies Develop and adopt gift acceptance policies Develop stewardship standards Establish Legacy Society

Key Elements of the Plan

Key Marketing and Messaging Develop a case statement for short-term gifts Develop a case statement for long-term gifts Add gift planning information to website Design ongoing educational tools for donors and prospects and professional advisors Explain the foundation’s role - “About the Foundation”

Key Elements of the Plan

Activities and Outreach Meetings with professional advisors Stewardship meetings Meetings with current donors for deferred gifts Meetings with prospective donors Annual Legacy Society Event Quarterly Lunch & Learn Events

Setting Goals

Short-term dollar goals Long-term dollar goals Infrastructure tasks Proactive/reactive calls on donors Proactive/reactive calls on advisors Number of new commitments/dollar values

Tracking and Reporting Progress

Create one-page development report Set goals, progress to goal, last year progress at same date Circulate among staff, board Important to educate!

Final Thoughts