Your Fundraising Plan: Where Mission and Margin Meet

Transcription

1 Your Fundraising Plan: Where Mission and Margin Meet Nonprofit Essentials July 20, 2011 St. Thomas University Reid A. Zimmerman, PhD, CFRE 1 A Fund Raising Story Funny Good Bad Scary Successful Who has one they will share??? 2 1

2 Giving to Others Philanthropy < Gr. Φιλαν & άνθρωπος to love man A desire to help humanity Charity < L. caritas affection Love for one s fellows Welfare < M.E. welfaran to go well State of health, prosperity Judeo / Christian indicatives Greek Culture Koran Talmud / Torah Fire Insurance of the 1800s 3 Sometimes Fundraising may feel something like this July 2011 Reid A. Zimmerman, PhD, CFRE 4 2

3 Or this July 2011 Reid A. Zimmerman, PhD, CFRE 5 Maya Angelou You want to compose a good world. It is an honorable and noble profession. July Reid A. Zimmerman, PhD, CFRE 3

4 Fundraising in the Social Sector: is NOTbegging! It is supporting those facets of our culture which are of the highest value: Health & well-being Artistic expression Spirituality & religion Education & new ideas charitable giving Total = $ billion ($ in billions) Corporations $ % Foundations $ % Individuals $ % Bequests $ % July 2011 Reid A. Zimmerman, PhD, CFRE 8 4

5 Recipients of contributions, 2007 Total = $ billion ($ in billions) Public-society benefit $ % Health $ % Arts, culture, and humanities Human services $ % $ % International affairs $ % Environment and animals $ % Education $ % Foundations $ % Religion $ % Unallocated giving $ % charitable giving Total = $ billion ($ in billions) Individuals $ % Corporations $ % Foundations $ % Bequests $ % July 2011 Reid A. Zimmerman, PhD, CFRE 10 5

6 Types of recipients Total = $ billion ($ in billions) International Affairs Arts, Culture, $13.30 and Humanities 4 % $12.79 Public-Society 4% Benefit $ % Health $ % Human Services $ % *Foundation grants awarded to individuals Environment and Animals $6.58 2% Education $ % Grants to Individuals* $3.71 1% Gifts to Foundations $ % Religion $ % Unallocated giving $ % July 2011 Reid A. Zimmerman, PhD, CFRE 11 July 2011 Reid A. Zimmerman, PhD, CFRE 12 6

7 July 2011 Reid A. Zimmerman, PhD, CFRE 13 Giving USA $ Billion Giving by Source Foundations 14% Bequests 8% Corporations 5% Individuals 73% July 2011 Reid A. Zimmerman, PhD, CFRE 14 7

8 Giving USA $ Billion Gifts to Recipient Environment / Animals 2% International 6% Foundations 11% Misc 2% Religion 35% Arts 5% Public Benefit 8% Health 8% Human Services 9% Education 14% July 2011 Reid A. Zimmerman, PhD, CFRE 15 Pyramid of Giving Donor Growth Donor Contact Donor Commitment ESTATE OR PLANNED GIVING Bequests Planned Gifts MAJOR GIVING Endowment Campaigns Capital and Special Campaigns Major gifts from Individuals Major Gifts from Corporations and Foundations ANNUAL GIVING Support Group Organizations Special Events and Benefit Events Annual Giving Campaign/Direct Mail program SUSPECTS Selected Publics All the Public Everyone in the Area Investment Involvement Interest Information Identification. 16 8

9 Peter Drucker ( ) The bottom line in the nonprofit world is Changed Lives. July Reid A. Zimmerman, PhD, CFRE Letts, Ryan & Grossman High Performance Nonprofit Organizations, 1999 In reality, however, (nonprofit) performance is all about translating caring, believing, and compassion into results. July Reid A. Zimmerman, PhD, CFRE 9

10 Please. Will you give me $100? July Reid A. Zimmerman, PhD, CFRE Defining Case The reasons why an organization both needsand meritsphilanthropic support, usually by outlining the organizations programs, current needs and plans. And sharing what the resultswill be for your clients/participants

11 Developing Your Case Introduce the Issue Introduce Yourself Share the Solution Why is this the BestSolution? Why is Nowthe time? How will you know if you have been Successful? What will be the Outcomes for people? 21 Avoid Too much emphasis on the organization Believing that your process is the outcome Telling everything you know Assuming your reader knows what you know Going on.and on and on 22 11

12 Top Three Reasons People Give: Belief in Mission and Stability of the Organization Sense of Civic Responsibility High Regard for Staff and Volunteer Leadership 23 Bottom Three Reasons People Give: Guilt and Obligation Promotional Materials and Proposals Tax Considerations 24 12

13 The Seven Rights Right Prospect Right Purpose Right Method Right Time Right Amount Right Solicitor Right Form 25 Responsibilities The Donor Bill of Rights Philanthropy is based on voluntary action for the common good. Association of Fundraising Professionals

14 Charitable Giving Standards Charities Review Council Public Disclosure Governance Financial Activity Fundraising 27 PRINCIPLES AND PRACTICES FOR NONPROFIT EXCELLENCE 1. Role in Society 2. Governance 3. Planning 4. Transparency and Accountability 5. Fundraising 6. Financial Resources 7. Human Resources 8. Civic Engagement and Public Policy 9. Strategic Alliances 10. Evaluation

15 Your Plan Not to plan is to plan to fail Realistic expectations Responsible margins Diversification is critical 29 Plan Your Plan Who will be responsible? ED / DOD / Prudent budgets Board Committee? Include administrative & in-direct costs in the plan and proposals The percentages and amounts are individual to your organization 30 15

16 Be SMART about your Goals S pecific M easureable A cceptable R elevant T ime-bound 31 GOAL: To increase general operating support from individuals in 2011 by $5000 Tactic Process Measure Outcome Measure Budgetary Requirement Responsibility Increase direct mail volume and mailings By how many and when? Number mailed Dates of mailings % Responses $ Generated Goal and actual Cost for additional printing and postage Exec. Director or Dev. Director.not both! Focus on larger gifts from previous donors Who and when? Individuals Contacted % of increase in gifts $ Generated Goal and actual Minimal - Coffee or Lunch Board Members & Exec. Dir. Named with specific donors named as well July 2011 Reid A. Zimmerman, PhD, CFRE 32 16

17 Type of Activity Direct Mail Major Gifts Sub Tactics First mailing Second mailing Etc. JAN FEB MAR APRIL MAY JUNE JULY Insert as much information here as possible. Prospecting Cultivation Corp Sponsorships Corporate Grants Foundation Grants Events Board Giving July 2011 Reid A. Zimmerman, PhD, CFRE 33 Work Your Plan Who will do the work? Exec. Director Development Officer or Staff Board(Board Committee) Volunteers Consultant 34 17

18 Measure Your Plan What reports do you (ED & Board) need and how frequently? Financial Funding What measures of process and outcome will tell of your progress? 35 Be DATA DRIVEN!! Sustainability means basing decisions on fact not fancy! In the absence of measurement, management will assume the problem is people. (Zimmerman) Discipline is the parent of Data. Data precedes information Information is required for management

19 Monitor Your Plan Change it if it isn t working Set goals and targets to increase your independence Monitor changes in your Mission which can impact your plan Keep your eye on society and the economy 37 Stewardship Reporting to our Donors Joint Effort of Development and the Program / Project Management Results / Evaluation Financial Review Outcomes for People 38 19

20 Cultivation Stewardship Gift July 2011 Reid A. Zimmerman, PhD, CFRE 39 Outside Help - Consultants To consultant or not to consultant that is the question. To get you started Yes. To advance your capability Yes. For a major campaign Yes. To do it for you No!! 40 20

21 Top Ten reasons Fundraising Plans Fail: 10. You didn t ask Additional Help & Information MCN MAP for Nonprofits Internet CASE AFP Chronicle of Philanthropy etc etc etc 42 21

22 RAZimmerman Consulting Promoting Organizational Effectiveness since 1987 Reid A. Zimmerman, PhD, CFRE th Street Pine City, MN office cell zimmerm@ecenet.com 43 Development Policies Gift Acceptance Processing of various types of gifts Cash Stock In-Kind Donor Privacy -HIPAA and Protected Health Information Recognition & Receipting 44 22

23 Accounting for Contributions Net Asset Classes Permanently Restricted (Endowment) Corpus remains in perpetuity Income available for use Income may be restricted Temporarily Restricted Unrestricted 45 Accounting for Contributions Net Asset Classes Permanently Restricted Temporarily Restricted (Program?) Restricted as to Purpose, or Restricted as to Time Entire gift available for use Unrestricted July 2011 Reid A. Zimmerman, PhD, CFRE 46 23

24 Accounting for Contributions Net Asset Classes Permanently Restricted Temporarily Restricted Unrestricted (General Operating) Entire gift available for any use ALL other transactions Board-designated 47 Fundraising Methods Annual Campaign Direct Mail Telefunding Special Events Grant writing Foundation, Corporate & Gov. Individual Major Gifts Bequests / Planned Gifts Capital Campaigns 48 24

25 Direct Mail Entice a prospect to open the mail Define a need in a few sentences or words Systematically review results and alter approach 49 Tele-funding Why would someone talk to you, listen and take action? Who and when will you call? What script will you use? Often best tied to a direct mail endeavor 50 25

26 Electronic Media Web Twitter Face-book Phone What are the opportunities and challenges with these means? 51 Special Events Who else is doing this event? When are they doing it? What are their results? What are the pitfalls? What are your true and totalcosts? Are you friend-raising or fundraising? 52 26

27 Do your homework Match their interests Follow their guidelines Usually restricted $$ Evaluation Foundation & Corporate Proposals Reporting requirements 53 Major Gifts Takes propensity and capacity Build a relationship with organization and with the people Can take 3 9 years Usually not their first gift The larger the gift the more restrictions 54 27

28 Planned and Estate Gifts Sometimes called an Ultimate Gift Often involves legal counsel and other professionals Long term and emotional relationship with a solid institution 55 Capital Campaigns Feasibility Study Campaign Planning 12 months Silent Phase 12 months Major/Lead gifts Public Campaign months Usually involves consultants and senior development professionals 56 28

29 Research Internet Search Engines Annual Reports etc. Foundation Search Databases FC Search MN Council on Foundations Foundation Database MCN Grants Directories (MN & National) 57 Right Prospect Linkage Ability Interest Previous gifts 58 29

30 Right Purpose Organization need matched with Donor interest General Support Program Support Other?? 59 Right Method Through the Mail Phone or Web Grant Proposal Face-to-Face 60 30

31 Right Time Windows of Opportunity New Wealth Change in family status Health Sale of Major Assets 61 Right Amount Ability Priority Are you on the donor s A B or C list? Cheerfully but less than they could Do they need to think about it? 62 31

32 Right Solicitor Individual? Who should it be? Team? Usually more successful than individual Volunteer / CEO / Staff / Board / Expert Witness 63 Right Form Cash Securities Real Property Life Insurance Annuities Bequests and Remainder Interests 64 32