UNITED WAY LEARNING SERIES. Developing a Strategic Fund Development Plan
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1 UNITED WAY LEARNING SERIES Developing a Strategic Fund Development Plan
2 Agenda Fundamentals of a Strategic Fund Development Plan Ten Funding Models Creating a Plan That Works for Your Nonprofit
3 Schedule 9:00 9:20 REGISTRATION & NETWORKING 9:20 10:00 PRESENTATION & DISCUSSION 10:00 10:15 BREAK 10:15 10:55 SMALL GROUP WORK 10:55 11:30 REPORT BACK 11:30 Q&A & WRAP UP
4 Who is here today? Nonprofit Type: Human Service Arts and culture Education Health International Environmental Major Funding Source Government Foundations Corporate Individual: mem/annual Individual: major donor Workplace giving Fees for services Size: Up to $1MM $1 - $5MM $5 - $10MM $10MM + Roles DOD ED Other
5 What challenges do we face in creating a fund development plan?
6 What makes a plan strategic? STRATEGY is about making CHOICES: 1. broad approach 2. leverage your distinctive assets 3. achieve your goal.
7 What do donors fund? Organization MISSION PEOPLE IMPACT BRAND VISION
8 It s all about the people YOUR DONORS Passion Motivation Connection to your people Decision-makers Affluence Benefits they receive YOUR LEADERS AND TEAM Passion Ability to inspire Relationship-building Time spent on fundraising Making the case Stories of impact
9 Where are your people giving? Individuals Top Bridge Base Foundations Corporations Government Workplace LEADERSHIP GIFTS $ MAJOR GIFTS $1000+ BASE $100 +
10 Your funding strategy Where is the opportunity Currently the strongest? Not worth pursuing
11 Tactics follow strategy Funding Strategy Financial Targets Programs Key Tactics Action Plan
12 Ten Funding Models Stanford Social Innovation Review
13 Ten Nonprofit Funding Models 1-Heartfelt Connector 2-Beneficiary Builder 3-Member Motivator 4-Big Bettor 5-Public Provider 8-Resource Recycler 9-Market Maker 10-Local Nationalizer 6-Policy Innovator 7-Beneficiary Broker Peter Kim, Gail Perreault & William Foster, Stanford Social Innovation Review, 2009
14 Core elements of funding models Source Individuals, foundations, government, corporations, mixed Decision-maker Multitude of individuals, few individuals, policy-makers, administrators Motivation Self-interest, altruism, collective interest 14
15 Primary Source - Individuals MODEL Heartfelt Connector Beneficiary Builder Member Motivator Big Bettor Examples Broad mission appeal Provides individual benefits & connection Medical research, environment, international Serve a group, creates collective community Universities, hospitals Religious congregations, arts, environment Mission may be fulfilled within timeframe Medical research, environment Save the Children Harvard University NPR March of Dimes (polio) Source Individual Individual Individual Individual or Foundation Characteristics Decision- Multitude of Maker individuals Motivation Altruism Programs/ Tactics Special events Direct mail Corporate sponsorships Multitude of individuals Self-interest then altruism Fees Major gifts Multitude of individuals Collective Interest Few individuals Altruism Membership Fees Major gifts Special events Major gifts Direct mail
16 Primary Source - Government MODEL Public Provider Policy Innovator Benficiary Broker Examples Provides services seen as govt responsibilities Human services, education, international Interfaith Works (homeless shelters) Offers significant new approach, often result of crisis Human services, education, international Beneficiaries decide how to spend the money Health, housing, employment Characteristics Latin American Youth Center (LAYC Academy) Ardmore Enterprises (disabilities) Source Government (via RFP) Government (via champion} Government (via reimbusement) Decision- Maker Administrators Policymakers Multitude of individuals Motivation Collective interest Collective interest Self-interest Programs/ Tactics Government Contracts Earmark or govt. pilot project Gov't. reimbursement
17 Primary Source Corp. + Mixed MODEL Resource Recycler Market Maker Local Nationalizer Characteristics Nonprofit uses surplus or low-cost goods Funder with self-interest and abililty to pay Top priority local issue, common to many localities Examples Food, international Health, conservation Education, youth development Capital Area Food Bank The Trust for Public Land Big Brothers Big Sisters of America Source Corporate Mixed Mixed Decision- Maker Few individuals Mass of individuals / few individuals Few individuals Motivation Self-interest Altruism/self-interest Altruism Programs/ Tactics In-kind giving Fees Major gifts Major gifts Special events
18 Creating a Plan
19 Strategic Development Plan STRATEGIC DEVELOPMENT PLAN Mission, Vision, Impact, Strategic Plan Realistic & Ambitious FINANCIAL GOAL Core Funding Strategy Core Messages Donor Segmentation and Stewardship Key Tactics Financial Targets per Donor Type & Tactics Roles of ED, DOD, Board, Volunteers Activity Calendar, Budget, Systems
20 Strategic Development Plan Outline DEVELOPMENT PLAN Goal - $ Breakdown Core strategies Annual Objectives Activity calendar Expense Budget FOR DEV COM & BOARD For contributed revenue By source and/or program Major approaches to achieving goal Measurable objectives per source, program, strategy etc. By month at a minimum Major categories, at a minimum ACTION PLAN Tactics, project timelines, staffing, systems, itemized budgets etc. INTERNAL Detailed implementation plans that guide development operations
21 Let s get going! Table Team Work 1 Consider how CP Fund Development - Strategy Planning Tool relates to your nonprofit 2 Get input from others at table 3 Divide into new teams based on funding model 4 As a team, select one organization as a case study for planning as time permits. 5 Report back (5 minutes each group)
22 Thank you to our Sponsor and Partners! Sponsored By And special thanks to all of you! Mary Robinson Julie Crudele
23
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