Revenue Sources. Charitable Giving 8/29/12. Exploring the Revenue Path Less Traveled: Fund-Raising and Grants
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1 Exploring the Revenue Path Less Traveled: Fund-Raising and Grants Janet Levine Janet Levine Consulting Building Capacity for Nonprofit Organizations Revenue Sources Other includes investment income, government non-grant funding, event revenues Charitable Giving The sector as a whole: 1
2 Funding Needs Current Operating Budget: $ + New initiatives over next 2-5 years: $ $ $ TOTAL NEEDED $ Fundraising Streams What can you count on coming in from tried and true ways of raising money. Revenue Needed minus Consider a 5 year running average Revenue Raised equals Charitable Gifts Required New monies from new sources The Magic Bullet Aka: The secret of fundraising success 2
3 Relationships What we say/hope/believe Your Board The Reality Fundraising: 48% of organizations have a board member identifying donors 41% have a member participating in cultivation 42% have someone helping to ask 44% do NOT have 100% board giving 3
4 Success Is A 2-Way Street Your job: Make sure the Board understands their roles and responsibilities Provide Training and support so they can do their job especially fundraising The Board s job: Your organization is one their top 3 philanthropic priorities Give a substantial or stretch gift every year Make a lead gift when there is a campaign Be an active and productive member of the development team, involved in all aspects of fundraising Make Sure Fundraising Gets the Respect (and $) it Deserves Development sits AT the table! THE BOARD Development Funding Between 20-40% RESOURCES FOR FUNDRAISING QUALITY AND QUANTITY OF PROSPECT POOL 4
5 Consider WHO You Want to Approach SOURCE WAYS TO RAISE FUNDS REOURCES NEEDED Corporations Sponsorships Support for projects or programs Access to those who have the budget Programs that might interest them Ways to promote their generosity Foundations Grants Programs that meet their areas of interest Ability to write grants Ability to manage grants Individuals Mass methods (Annual Gifts) Individual solicitations (Major and planned gifts) Events (to involve them) Ways to reach large numbers of people who might be interested in your organization Access to people of afeluence who have an inclination to support you Advisors for planned gifts Prospecting Stewarding Cultivating Soliciting The Ladder of FUNDRAISING EFFECTIVENESS Personal visit: face to face Personal letter (on personal stationery) Personalized letter Telephone solicitation (renewal) Impersonal letter (direct mail, ) Impersonal telephone, (acquisition) Social networking, webbased fundraising Fund raising benefit, special event Door-to-door Media, advertising, Internet 5
6 Spending Time in the Right Places The lower the cost to raise a dollar Looking at both effectiveness and cost will help you to figure out where time is best spent Only 3-5% of your donor base will be able to make a major gift The more effective your technique The Building Blocks of your Development Plan Understand where you are Define where you want to go (the Goal) Assess the resources you have (you, the board, administration and a budget) Decide how best to reach your goal Identify target markets Finding the Right Mix Relies on understanding: Where your organization is today Where you want it to be tomorrow What specific needs you have What resources you can allot to meeting those needs 6
7 8/29/12 Consider Fundraising Vehicles Technique Is Good For Direct Mail Unrestricted Gifts Regularity Quick Turnaround Developing Loyalty Phonathons Bringing donors back Increasing annual gifts House Parties/Intimate Events Introducing new donors Larger annual gifts Reaching out to new audiences Major Gifts/Grants Restricted gifts Gala/Special Event New Prospects Thanking existing supporters Sponsorship opportunities Planned Gifts Building Endowments Leaving a Legacy Allowing annual donors to make large gifts Future (deferred) support Supporting specific projects Development Budgets Revenue Expenses = NET Income Meaningful goals take into account both what you bring in and the cost of bringing it in As You Develop Your Budget Don t forget personnel costs 7
8 Successful fundraising is the right person asking the right prospect for the right amount for the right project at the right time in the right way.! Development Calendar First fill in the obvious: o Events o When grants are due o Direct mail drop dates o Phonathon (And remember to block out when you can t be fundraising) Keep adding Meetings for cultivation Screenings Solicitations Planning sessions Calling for appointments Working with your Board members 8
9 Given your resources, Learn to Prioritize Chose the most effective and sustainable ways to fundraise for your organization! Successful Fundraising Means Planning Taking the time to Develop relationships Nurture them Keep them Building a strong foundation on which to grow your programs 9
10 Thank You Janet Levine Janet Levine Consulting Helping Nonprofits Increase Their Fundraising Capacity 10
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