Fundraising 201 Wednesday, May 18,

Transcription

1 Fundraising 201 Wednesday, May 18,

2 Facilitator Notes (fundraising) Review board s role in fundraising Industry info Board fundraising self assessment Building rapport Role play 2

3 Objective To clarify the role of the board as a whole in fundraising, and the role of individual board members in fundraising. To explore strategies and techniques that help board members do as much as possible to help raise money. 3

4 Giving USA 2015: The Annual Report on Philanthropy for the Year 2014 In billions by source Giving USA 2015: The Annual Report on Philanthropy for the Year

5 Giving USA 2015: The Annual Report on Philanthropy for the Year 2014 In billions by cause Giving USA

6 The Board s Role in Fundraising The Board s Role in Fundraising Define or clarify mission Establish the strategic plan and approve adequate budgets Put the organization in place hire the chief executive See that there is a development plan and monitor its progress Create fundraising and donor recognition policies Ensure fundraising methods adhere to ethical standards Participate in fundraising Monitor progress and evaluate outcomes The Staff s Role in Resource Development Coordinate the overall fundraising process Develop relationships with funders Take the initiative generate ideas, identify prospects, do research, coordinate visits Keep files, records, mailing lists, acknowledgments Prepare correspondence and write proposals and reports Support board member fundraising efforts Individual Board Member Participation in Fundraising Commit yourself to the organization s mission Make a meaningful personal contribution Identify, evaluate, and cultivate prospects Make introductions to prospects Organize and attend special events Attend face-to-face solicitations Write or sign appeal letters Organize and attend special events Thank donors Typical Fundraising Duties of the Chief Executive Serve as the organization s representative to potential funders and the community Serve as a contact for donors Ensure compliance with funding sources and regulatory requirements Hire and supervise resource development staff Initiate and assist the board in developing resource development policy Help the board set fundraising priorities 6

7 What is fundraising? 7

8 ROI on fundraising activities The chart indicates that you would need to spend $1.15 in order to raise $1.00 through direct mailings to general lists. To solicit major gifts, you would spend 5 to 10 cents to raise $1.00. Method Cost Return on Investment Direct mail to general lists (non donors) 115% -15% Special Events 50% 50% Planned Giving 25% 75% Direct mail to prior donors 20% 80% Foundations/Corporations 20% 80% Major Gifts 5-10% 90-95% National Average, all methods: 20% 80% (Based on: James Greenfield, Fund-Raising: Evaluating and Managing the Fund Development Process) 8

9 Exercise Fundraising Checklist 9

10 Building rapport Use non-threatening and safe topics for initial small talk. Talk about established shared experiences, the weather, how you travelled to where you are. Avoid talking too much about yourself and avoid asking direct questions about the other person. Listen to what the other person is saying and look for shared experiences or circumstances - this will give you more to talk about in the initial stages of communication. Try to inject an element of humor. Laughing together creates harmony, make a joke about yourself or the situation/circumstances you are in but avoid making jokes about other people Be conscious of your body language and other non-verbal signals you are sending. Try to maintain eye contact for approximately 60% of the time. Relax and lean slightly towards them to indicate listening, mirror their body-language if appropriate. Show some empathy. Demonstrate that you can see the other person s point of view. Remember rapport is all about finding similarities and being on the same wavelength as somebody else - so being empathic will help to achieve this. 10

11 Tips Do your research You talk 20% of the time and allow the prospect to talk 80% of the time If the conversation lulls, think back to your research & ask a question Have an idea of what might resonate with the prospect 11

12 Let s get to know each other Goal Find out 2 facts about the person Where they live? What kind of work do they do (or did)? Find out 3 areas of interest for the other person Discover at least 1 area you intersect. 12

13 Next steps. Follow up thank them for the meeting, summarize what you talked about, provide any information promised at the meeting. Note their interests in your tracking system. Look for ways to continue to connect with the prospect. Invite them to participate in activities events, site tours, meeting a board member. 13

14 Sample questions & phrases Transitions from small talk: Listen I want to talk about something important, I ve got a serious question for you, Thank you so much for meeting with me, I would love to tell you a little about XXX Jane, I need your help. Bring the mission home: Samuel, every day, hundreds of people are diagnosed with XYZ disease, and each year 2,500 will die because they can t afford the medication they need to treat their affliction Janet, I m heartbroken when I look into the faces of these former child soldiers. I see such pain, and I can t believe we don t have the resources to help every single one. Making the ask: Would you consider a gift of XX? You see, Bob, the entire project is $4 million. To reach that, we need three leaders at the $200,000 level. You seemed like a great fit. Would you contribute $50 to pay for 25 meals for the homeless? I m trying to raise $1,000 for the Boy Scouts. Will you donate $100 to help me reach that goal? If they say no I can appreciate that. I can t possibly give to the campaign with both of my kids in college. You can answer, So our objective is to figure out how to make it so you can make the gift you want to the campaign while spreading the pledge payments to make tuition payments easy. Is that it?

15 Sample meeting Hi Ruth, how are you? How are the kids? (Pleasantries) Listen, I ve got something important to ask you. (Make the Transition) As you know, I ve been on the board of the free clinic for almost a year now, and it s something that is very near and dear to my heart. (Make the Connection) Every time I visit the clinic, I see meet the nicest families, who seem just like mine, only they can t afford even basic medical care for their children. I see kids who have to be admitted because their families couldn t afford antibiotics for a simple infection. It s very sad! (Make Them Cry) Ruth, right now, we can only serve about 50% of the families who need our help. Our goal is to be able to serve every single family and child that needs medical care at the clinic. We need to raise another $100,000 to make that dream a reality. (Tell Them Why) Would you be willing to contribute $250 to help us reach that goal? (Make the Ask) From, 15

16 Fundraising Vehicles See handout 16

17 Step 1: Gather the numbers What are your projected expenses? What income can we already expect? Source Last Year's Income Last Year's Expense Current Year's Income Current Year's Expense Next Year's Income Next Year's Expense Individual Donors Total Membership dues Events Major Gifts Mail solicitation Other Sales/earned Income Other sources Government Foundation Corporations TOTALS 17

18 Step 2: Analyze Past Fundraising Efforts What was the return on investment (ROI)? If it didn t work, can we improve? Given similar results, what can we expect this year? What new opportunities are coming up? Strategy Number of Prospects Asked/Invited Response: Number and Percent (divide response # by number of prospects asked) Expense (including staff Income time in $$) Net Amount Raised Average gift (gross raised divided by # of responses) Who Participated? What worked & what didn t Other advantages Sample: Annual mail appeal Staff, some board, members (mailing / 5% $500 $8,250 $7,750 $55 party) Worked: Having board turn in prospect names; Didn t work: Trying to have staff do all the data entry of new names Served as an annual update to our donors and provided groundwork for in-person upgrade meetings 18

19 Step 3: Determine Your Available Resources 19

20 Step 4: Strategies What will you do? Acquire new donors list all activities to acquire new donors Renew current donors How will you ask current supporters to give again? Upgrade current donors Who will you target and what is your plan to upgrade a donor? 20

21 Step 5: Hammer out the details For each strategy, fill out a separate sheet with the following info: Strategy: Projected income (gross): $ Total cost (use worksheet below): $ Net income: $ Other goals that this strategy will meet (such as get new donors, generate publicity, involve board members in fundraising: Number of staff & volunteers to carry out this strategy: 21

22 Step 6: Pulling it all together 22

23 Resources The Fundraising Authority: BoardSource: Engaging Your Board in Fundraising: A Staff s Guide Fearless Fundraising Marc A. Pitman 23

24 Steps to creating a fundraising plan 1. Presenting a strong mission statement and vital programs 2. Conducting an assets inventory for your organization 3. Creating a dynamic case statement 4. Setting realistic fundraising goals 5. Diversifying funding mix for your organization 24

25 Steps to creating a fundraising plan, cont d 6. Formulating strategies for raising money from individual donors 7. Formulating strategies for raising money from institutions 8. Putting the fundraising plan/calendar together 9. Making the approach/building relationships 10. Monitoring and evaluating your fundraising effort 25

26 Development Activities Individual Annual giving Major gifts Planned giving Corporate Government Foundation Grants You should have an engagement plan for each donor Direct mail Special events 26

27 Basic fundraising cycle 27

28 Donor Pyramid Planned Gift Major Donor Renewed/upgraded donor First time donor Universe of prospective donors 28

29 Annual fund profile Major gifts 10% of donors 60% of $ Upgraded Gifts 20% of donors 20% of $ Base 70% of donors 20% of $ 29

30 Gift Range Chart 30

31 Moves management Moves management refers to the process by which a prospective donor is moved from cultivation to solicitation. Moves are the actions an organization takes to bring in donors, establish relationships, and renew contributions. 31

32 Sample Stewardship Plan Gift Recognition Relationship/Touches Annual Acknowledgement Dev. Staff Thank-a-thon ED Board Contact Outcomes Quarterly Get to Know Bi - annual 1 on 1 Stewardship Donations Letter/Receipt Personal Note Call Call/Note Call/Note Update -1 Month Newsletter XXX Events Update Calls Meetings Events $10K + X X X X X X X X X X $5K - $9,999 X X X X X X X X X $1K - $4,999 X X X X X X X $500 - $999 X X X X X Below $500 X X X 32

33 Elevator Speech Exercise A compelling one-minute message provides an introduction to your organization, its brand, and the work that you do. This simple exercise allows you to create a Mad Libs style one-minute message that will leave your audience asking for more. How do you use it? Just replace the underlined words with your own. One minute message: (Name of organization) believes (deeply held value). Everyday we (verb) (object) for (constituents), because (problem statement). Example: Community Initiatives believes that people starting projects that serve the public good shouldn t also have to become experts on taxes, accounting and human resources. Every day we provide a legal framework and quality professional support to nonprofit initiatives to allow them to flourish. Because when leaders can focus on their vision, instead of being distracted by back-office administrative tasks, they have the greatest chance of improving our community. 33

34 What is a case statement? When talking to potential donors, a copy of a compelling case statement continues to present the case for support long after the meeting has concluded. A case statement can be included in a grant application as justification for the request. For direct mail or campaigns, the message can mirror the case statement and in the case of direct mail, illuminate the copy that you include with the appeal letter. Organizations might use their case statement on their website. The case statement acts an informal script when phoning prospective donors; all the important points are gathered in one easily accessible document. A condensed version of the case statement, reduced to a page or two, can serve as hand-outs when donor prospecting. 34

35 Writing a case statement 1.The Introduction: Exceptional case statements always begin with a story. Make the reader feel emotionally invested in your nonprofit by using storytelling to establish a personal connection. 2. The mission and the vision: Outlining the mission statement of the organization answers the why do we exist? question and painting a bold and courageous vision for the nonprofit s future leaves no doubt as to Why should we care? 3. The history: Summarize how it all began. From the founding of your nonprofit to the work it has accomplished so far. Include the philosophy, those key values and beliefs that drive your organization s approach to answering the needs and providing the services of its mission. 4. Explain the work: Your donors, supporters and prospects need to know about the important work being done. What are the programs and services the nonprofit is currently involved in and what are the ongoing requirements to keep these services coming? 5. Successes and results based evidence: Here is where data and storytelling connect, in the tales of lives changes, testimonials of success, those the organization has helped. 6. Money and funding: Dreams and visions all come with a monetary cost to accomplish. By telling donors why the funding is needed and what results will be achieved, you are inviting them to become participants in the vision. 7. Visuals: Don t clutter your case statement with solid blocks of text. Create visual emphasis with charts, graphs or maps demonstrating growth. Use carefully curated images of your organization at work and captivating pictures of beneficiaries the nonprofit has helped. 8. Highlights: Is there anything that stands out in your nonprofit s favor? Has the organization recently won an award? Anything else puts the nonprofit in the limelight? Recent press releases or articles, events that received public commendation, etc. 35

36 Making the Ask: Role Play You have been divided into groups of four and assigned the following identities: #1 Board Member: Play a member of the board of directors. You have been on the board for 2 years, but this is your first time meeting with a donor. #2 Staff: You have been on staff for three years. You have strong knowledge of the organization s programs. The organization has determined that this prospect is ready to be asked for an annual gift. #3 Potential Donor: You are involved in your community and serve on another nonprofit board. You have never made a donation to the organization. You are married and have two teenage children. You and your spouse earn $245,000 a year. As a GenXer, you need to feel as though every dollar you contribute goes to something you believe in. #4 Observer: You are there to observe the solicitation and share their thoughts and reflections during the debrief that will follow the role play. 36

37 Making the Ask: Role Play Assume that the Board Member (#1) and the Prospect (#3) have a personal connection and this is not a cold call. #1 and #2 should take 5 minutes to plan their solicitation using the tips below. At the same time, #3 and 4 can put themselves in the shoes of #1 and 2 and discuss amongst themselves how they would approach the solicitation while they wait for #1 and #2 to make their pitch. a) Start with small talk to establish warmth and rapport. b) Introduce the subject c) Get to the point. d) Be prepared to explain. e) Make the close 37

38 Making the Ask: Debrief Prospects Did the team listen well? What advice would you give them moving forward? Board & Staff Would you do things differently now that you have had a chance to practice? Groups What did you learn? 38

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41 Resources The Chronicle of Philanthropy: How America Gives: Giving USA: Giving USA 2015: The Annual Report on Philanthropy for the Year 2014 The Indiana University Lilly Family School of Philanthropy THE 2014 U.S. TRUST STUDY OF HIGH NET WORTH PHILANTHROPY, tfinalreport.pdf?sequence=1&isallowed=y 41