Staten Island Not-for-Profit Conference
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1 Staten Island Not-for-Profit Conference Built to Last: Tactical Steps to Creating Strong Funder Relationships March 16, 2012 Presented by Theresa A. Schieber
2 Goals and Agenda 1. Identify strategies for effective funder cultivation and stewardship 2. Tactical steps for creating relationships that lead to funding 3. Get inspired! Staten Island Not-for-Profit Conference Page 1
3 Part I: Context Staten Island Not-for-Profit Conference Page 2
4 Building Lasting Relationships with Funders Start long before you request support Multi-year, multi-stage process this is a process, not an event Do not show up when you want money Do not begin and end with asking for money Remember, funders are people too Staten Island Not-for-Profit Conference Page 3
5 Why Do People Give? People give to people They are asked Enthusiasm for your work They want something in return Challenging project Your organization is a model Other people are giving to your project A funder believes you are the right person to invest in and support Consistent with their interests/fits within their funding priorities & goals Staten Island Not-for-Profit Conference Page 4
6 Elements of Success 1. Do it on purpose 2. Connect the funder with the broader strategic goals of the organization 3. Make funder engagement part of your fundraising strategy 4. Match funder intent with organizational need Staten Island Not-for-Profit Conference Page 5
7 Part II: Tactical Strategy Staten Island Not-for-Profit Conference Page 6
8 10 Steps to Building Strong Funder Relationships PREPARE 1. Create the Fundraising Strategic Plan 2. Prospecting and Research 3. Prioritize and Identify Connectors ENGAGE 4. Personal Visit Program 5. Strategic Communication Plan 6. Targeted Cultivation Events 7. Prepare for the Ask TEND 8. Write and Submit the Proposal 9. Create a Feedback Loop 10. Make Stewardship a Daily Discipline Staten Island Not-for-Profit Conference Page 7
9 1. Create the Fundraising Strategic Plan Define goals, timelines and tactics for creating and sustaining foundation relationships Consider where you are going, and what resources will get you there For the next 3 years, you should know: 1. Vision, Priorities and Impact 2. Financial plan and fundraising goals 3. An expense budget 4. Program-by-program strategy 5. Staff and board roles 6. Metrics Define materials, events, timing, benchmarks Evaluate the program and progress annually Remember: Foundation relationship building is driven by personal visits and high-engagement cultivation activities Staten Island Not-for-Profit Conference Page 8
10 2. Prospecting and Research Do your research Take a look at their giving patterns Are there opportunities to partner with past grantees Read the guidelines carefully Understand their fiscal year / giving calendar Create a funder profile and add to your database Identify the right person Understand the foundation s motivations/agenda Ask people who have been funded how they did it Can you answer this question: How do my mission and goals help advance the foundation s mission and goals? Staten Island Not-for-Profit Conference Page 9
11 3. Prioritize Prospects and Identify Connectors Build your prospect list by rating how closely you match with a funder Priority 1 Immediate Cultivation Priority 2 Active Cultivation Priority 3 Targeted Cultivation Use the priorities to tag and organize prospects in your database. Assign an advocate to every prospect a board member, staff member or other stakeholder Prospect Screening sessions Who does your board know on your list Are there board contacts missing from the list Ask colleagues for input or advice Be realistic. How many people can you visit? Structure your database to manage the prospect list Staten Island Not-for-Profit Conference Page10
12 4. Personal Visit Program Secure the meeting: Submit a letter or send an requesting an introductory meeting Follow up with a phone call to schedule a meeting At the meeting: Ask for advice Engage a funder in a conversation Listen Exude enthusiasm Stand on equal ground Identify a next step After the meeting: Send a thank you letter Execute the next step Plan to schedule a follow up meeting in 6mths 1 year Remember make friends first, then make funding requests. Staten Island Not-for-Profit Conference Page11
13 5. Strategic Communication Plan Add the funder to your mailing list and list Aim for 6-7 points of contact over the course of a year Incorporate strategic communication points into the database Send periodic updates; annual report; press releases, information on outcomes, news of a new grant Don t ask for money, yet Show the funder your organization is a good fit If you are invited to submit an LOI or proposal, do so, immediately Think about a two way street how can you help the foundation? Staten Island Not-for-Profit Conference Page12
14 6. Targeted Cultivation Events Invite the program officer, and perhaps board members for a site visit Invite a funder to speak at an event Coordinate a roundtable event with partners and ask funders to attend Invite a funder to participate in your work Let funders see you in action Think about a two way street how can you help the foundation? Staten Island Not-for-Profit Conference Page13
15 7. Prepare for the Ask Be honest, tell the funder you would like to submit a proposal Know what to ask for --the funder should not be surprised Reinforce how your goals fit with the foundation s goals Leverage unique elements of your organization Anticipate the 40 tough questions Develop a plan for recognition Staten Island Not-for-Profit Conference Page14
16 8. Write and Submit the Proposal 1. Carefully match your project/request to the appropriate funding source 2. Follow the funder s guidelines and proposal format precisely 3. Customize your proposal for each funder 4. Be concise and specific don t use 10 words when 2 will do (and, when you can, incorporate graphics.) 5. Proof read. Proof read. Proof read. Pre-write Budget time Start where ever it is easiest Staten Island Not-for-Profit Conference Page15
17 9. Create the Feedback Loop Keep communication open If you don t hear from the funder, call your program officer If you receive funding: Say thank you Complete reports on time Demonstrate that you are using funding wisely Continue to implement the strategic communication plan If you do not receive funding: Send a thank you letter Call the funder - Ask if there is anything you could have done differently Ask if you can resubmit again in the next cycle Ask for advice on other foundations that might be interested in your approach Continue to implement the strategic communication plan Staten Island Not-for-Profit Conference Page16
18 10. Make Stewardship a Daily Discipline Stewardship does not end with a Thank-You note Go back to Step 4 and repeat. Communicate results Keep funders and prospective funders engaged Cultivate new donors and nurture long-time supporters Staten Island Not-for-Profit Conference Page17
19 Part III: Final Thoughts Staten Island Not-for-Profit Conference Page18
20 40 Tough Questions A few to prepare for How do you know there is a need for this program or service? What will happen if you are not awarded funding? How will you determine success, what results to you seek to achieve and how will you measure them? How does this project relate to other projects at the organization? How will you fund this program over the long-term? Who are your partners and what role are they playing? Who else provides similar programs? Staten Island Not-for-Profit Conference Page19
21 Attributes of a Committed Funder Sees grant as an investment Takes time to think through the grant Engaged in the organization s development Linked to the organization or an advocate Views the grant as a relationship Committed to the vision Wants to make a grant that will have impact Recognition is often a factor Staten Island Not-for-Profit Conference Page20
22 Remember. Every funder needs a customized approach Cultivation is not one-size-fits-all Understand the donor s motivation and link it to your need Explore different approaches Use feedback Have a plan; it s your roadmap Don t get discouraged by no Persistence Staten Island Not-for-Profit Conference Page21
23 Start small Be patient Aim high Staten Island Not-for-Profit Conference Page22
24 For more information The Whelan Group (TWG). TWG is a leading private consulting firm that specializes in fostering strategic growth, strengthening the capital structure and creating long-term sustainability for our clients. Founded in 1980, the firm has worked intensively with more than 200 organizations with a regional, national or international reach, and have helped our clients to attract more than $1 billion in charitable support while building their fundraising capacity to raise billions more. In addition, the firm has advised over 60 clients on the development and financing of major building construction and renovation projects. Theresa A. Schieber, Vice President & COO. As VP & COO, Ms. Schieber oversees the firm s operations, directs the implementation of the firm s growth strategy, plays a lead role in new business development and serves as a team leader and mentor to the staff. As a Senior Consultant she has advised on and managed fundraising projects totaling over $500 million. tschieber@whelangroup.com <Client Name> <Report Title> Page23
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