Focus on the Annual Fund!

Start Writing Your Case Statement Focus on the Annual Fund! Workbook & Reference Guide Fred Maglione, JD, CFRE Chief Executive Officer http://blog.omegafi.com @fmaglione

Key Definitions & Concepts Case: A case is the general argument about why your foundation deserves gift support. The case is bigger than the organization and relates generally to a cause. In effect, the case is an accumulation of information about the organization, its cause and how it serves that cause. Cause: The cause is the set of interests your foundation is attempting to serve. It is the societal need that the combined efforts the fraternity/sorority and the foundation are trying to meet. Case Statement: At different times and for different people, appropriate parts of the case can be selected and used to present a specific argument about why the institution deserves financial support to do its work now and in the future. The case statement is such an argument. It is a specific illustration of some of the elements making up the full case. Although the case is typically made up of numerous reasons why your organization deserves support, not every single reason is necessarily included in each case statement. A case statement focuses on or highlights critical factors important under certain circumstances in arguing for gift support. Case Expression: A case expression is a specific publication or communication that contains a case statement. Examples include a campaign brochure, a proposal to a potential donor, a direct mail appeal, a magazine article, a Facebook post or any other communication that presents the case for support and often asks for support. Important Factors to Keep in Mind Your foundation does not exist and should not ask for money because the fraternity or your students have needs. The foundation exists to solve problems and meet the needs of society. The approach to any case for support should always begin with the idea that the foundation must demonstrate the fundamental need in society that they are trying to meet and for annual fund purposes, the need to meet this year Reaching more members for the sake of reaching more members is not compelling to most alumni. Reaching more members to have a larger impact on more members and society as a whole is compelling if you can demonstrate that your organization has a positive impact. Today, more than ever, sophisticated donors demand transparency in all aspects of an organization's operations. Your organization should make a concerted effort to increase transparency about governance, finances and program impact. An annual fund case statement should emphasize why you need the donor to make a gift this year and every year Copyright 2016. OmegaFi. Page: 2

Case vs. Case Statement AFP Dictionary Definition Seiler Definition Case The reason why an organization both needs and merits philanthropic support, usually by outlining the organization's programs, current needs and plans. The general argument why your fraternity/sorority deserves gift support. Case Statement A presentation that sets forth a case A specific illustration of some of the elements making up the full case. Intended Use Internal-use only External use Type of fundraising argument This document should relate to... Components General & Comprehensive It lays out every argument about why your foundation deserves charitable support The causes served by your foundation Everything a potential donor might want to know about your organization; an encyclopedic accumulation of information about your organization and the following topics applicable to the foundation and fraternity/sorority: Mission & Values Goals & Objectives Programs & Services Finances Governance & Policies Staffing Evaluation Mechanisms History Very Specific It outlines one or more specific arguments from the case about why your foundation deserves charitable support, your goals and objectives, the competence of the organization to serve its constituents and how gifts may be made. The Case A specific message to a specific audience for a specific cause An emotional opening The problem Your solution Benefits to organization Benefits to society Evidence you can make a difference Impact data History Testimonials Why now Your financial needs Call to action Copyright 2016. OmegaFi. Page: 3

Information to Gather for Your Annual Fund Case Resource File As you develop your case for support, development staff should compile a resource file made up of the elements from and related to both your 501(c)(3) foundation and your related 501(c)(7) fraternity/sorority that are outlined below. This file should be reviewed and updated on at least an annual basis and in advance of any new or major fundraising initiative. The topics below are presented from most to least important. Mission Statement Fraternity mission, vision, values statement(s) Foundation mission, vision, values statement(s) Goals & Objectives Foundation's short-term goals and objectives Fraternity's short-term goals and objectives Fraternity strategic plan Foundation strategic plan Programs & Services Summary of each leadership program funded by the foundation Cost of each foundation-funded program Cost per beneficiary ratio for each Foundationfunded program Academic achievements of members Description of restricted fund programs Description of educational housing grant program Description of scholarships awarded Facilities description (if applicable) Planning, Evaluation & Impact Evidence Growth in annual fund donors and dollars Growth in organizational membership Growth in chapters Academic performance of students Stories and photographs of students who benefit from programs and scholarships Organization community service data and trends Organization risk management data and trends Statistical evidence showing the impact educational grants have on your mission Student testimonials Learning outcomes from foundation-funded programs Number and amount of foundation scholarships awarded Number of scholarship applications received Number of people who attended a foundationsupported program Number of people unable to attend a foundation-supported program due to lack of funding To demonstrate the cause you are trying to advance Why you need support this year How does the short-term need fit into the long-term plan To tie specific gifts to specific programs To analyze and explain cost To demonstrate impact For restricted fund solicitations For housing solicitation efforts To demonstrate impact If raising money for your building To demonstrate effectiveness and impact; also can be weaved into stories Copyright 2016. OmegaFi. Page: 4

Statistical evidence of how the fraternity/sorority benefitted from foundation funding Information about the emerging or increasing need to provide additional funds this year Evidence showing the impact scholarships have on your mission Correlation between scholarship recipients, their academic performance and graduation rates Financial Information Balance sheet for foundation P&L for fraternity P&L for foundation Key performance indicators and summary information about Foundation finances Fund balance of foundation funds Itemization of foundation grants made Percent of gifts spent on direct programmatic support Percent of gifts spent on fundraising, overhead and administrative costs Investment performance over time Fundraising cost ratio Governance Bios of board members and key volunteers Gift Acceptance Policy Restricted Fund Policy Educational Housing Grant Policy Giving Club / Recognition Society Policies Policies regarding chapter-specific restricted funds Staffing Bios and credentials of key staff implementing programs Organizational chart History History of the fraternity / sorority History of the foundation Awards received by foundation Awards received by fraternity / sorority Giving Club histories History of any key fraternity / sorority programs funded by the foundation Location of chapters Location of alumni/ae organizations Show how foundation funds fill the gap To determine asks for donor types To demonstrate impact; good stewardship of donor investments To show mission-driven To show efficiency To show the board is a good steward of donor investments To show efficiency To demonstrate qualified leaders will be good stewards of your investment To ask for specific gift types If asking for restricted gifts If raising money for housing To talk about stewardship If asking for restricted gifts To demonstrate qualified staff will be good stewards of your investment To demonstrate effectiveness To demonstrate effectiveness Copyright 2016. OmegaFi. Page: 5

Case Development Worksheet #1 Your Foundation's Needs Problems in Society Copyright 2016. OmegaFi. Page: 6

Case Development Worksheet #2 Society's Problems How to Dramatize? Why would a member care? Why does society care? How to explain the need for annual support? Why do fraternities and sororities matter? Copyright 2016. OmegaFi. Page: 7

Sample Foundation Budget Fund Balances Unrestricted 1,645,734.00 Permanently Restricted 1,189,767.00 Temporarily Restricted 2,256,546.00 Total 5,092,047.00 Income Forecast Expense Budget Contributions Employment Expenses 152,672.00 Unrestricted 575,000.00 Educational Grants Restricted - Leadership Programs 80,000.00 Leadership Programs 250,000.00 Restricted - Scholarships 45,000.00 Consultants 75,000.00 Restricted - Chapter Funds 1,475,000.00 Chapter Housing 1,475,000.00 Administration Fees (2.5%) 86,157.83 Scholarships Awarded Rental Income 120,000.00 Unrestricted 40,000.00 Investment Income 172,315.65 Restricted 100,000.00 Other Income 35,000.00 Investment Manager Fees 53,880.71 Total 2,588,473.48 Legal & Accounting 45,000.00 Fundraising Expenses 83,275.00 Building Expenses 100,000.00 Miscellaneous 75,000.00 Total 2,449,827.71 Income minus Expense 138,645.77 Copyright 2016. OmegaFi. Page: 8

Sample Annual Fund Allocation Model & Message UNRESTRICTED INCOME BY SOURCE Unrestricted Contributions First-Time Donors 42,750.00 Board & Insiders 235,000.00 Regular, Modest Donors 87,000.00 President's Club 64,000.00 Unknown Mix of Donors 81,250.00 Special Events 65,000.00 Total Income 575,000.00 USE OF UNRESTRICTED CONTRIBUTIONS Grants from Unrestricted Funds Educational Grants Leadership Programs 250,000.00 Consultants 75,000.00 Scholarships Awarded Unrestricted 40,000.00 Building Exp. (Program Service) 20,000.00 Misc. (Program Service) 15,000.00 Total Grants from Unrestricted 400,000.00 Income minus Expense 175,000.00 ALLOCATING UNRESTRICTED DOLLARS BY SOURCE Lead Prog Consultants SS Building Misc Other First-Time 42,750.00 40,000 2,750 Donors 100% of your gifts funds scholarships Board & Insiders 235,000.00 117,500 117,500 1/2 funds leadership programs, 1/2 used where need is greatest Regular, Modest 87,000.00 43,500 20,000 15,000 8,500 Donors 90% of your gifts funds our consultants and supporting educational. costs President's Club 64,000.00 32,000 32,000 1/2 of your gift funds leadership programs, 1/2 used where need is greatest Unknown Mix of 81,250 40,625 31,500 9,125 Donors 89% of your gifts funds leadership training Special Events 65,000 59,875 5,125 Event will raise more than $50,000 tonight for leadership programs Total 575,000 250,000 75,000 40,000 20,000 15,000 175,000 Copyright 2016. OmegaFi. Page: 9

For Additional Information Download Resources from the OmegaFi Blog 1 http://blog.omegafi.com Download electronic versions of these documents. Start a conversation in the Comments section. 2 Talk further with Fred By email: fmaglione@omegafi.com On Twitter: @fmaglione References & Additional Reading Seiler, Timothy L. (2001). Developing Your Case For Support. San Francisco: Jossey-Bass. OmegaFi Blog: http://blog.omegafi.com Fraternity and Sorority Membership Linked to Higher Well-Being for College Grads (2014) http://www.gallup.com/opinion/gallup/173630/fraternity-sorority-membership-linkedhigher-college-grads.aspx Idaho Public Television Case Resources Booklet: http://majorgivingnow.org/downloads/pdf/idahoptv_mgi_notebook.pdf Public Television Case Builder File: http://majorgivingnow.org/downloads/pdf/case_builder.pdf Panas, Jerold. (2014). Making the Case: The Magic of the Word http://www.guidestar.org/rxa/news/articles/2014/how-to-use-your-case-statement.aspx? Panas, Jerold (2014). Questions I'm Most Often Asked About Case Statements http://www.guidestar.org/rxa/news/articles/2014/case-statement-faqs.aspx? Kihlstedt, Andrea (2015) How to Draft a Case for Support for Your Capital Campaign http://capitalcampaignmagic.com/how-to-draft-a-case-for-support-for-your-capitalcampaign/ Brown University Annual Fund: http://annualfund.brown.edu/about/index.html Washington University in St. Louis Annual Fund http://alumni.wustl.edu/give/annualfund/pages/about-the-annual-fund.aspx Copyright 2016. OmegaFi. Page: 10