OVERVIEW The Coastal Bend Bays and Estuaries Program engaged the consultancy services of Cate+Proctor to provide an assessment of its fundraising potential. Through discussions and analysis of current funding operations, Cate+Proctor identified strengths and opportunities to build upon current fundraising and donor relations activities. The focus of the assessment is to provide recommendations on action areas including: indicators of philanthropic culture; staff and technology resources; board, executive and staff leadership and a strategic process for engaging donors. Application and execution of these recommendations have the potential to produce a higher degree of philanthropic success for the organization to strengthen its impact on the health of the bays and estuaries of the 12-county region of the Texas Coast Bend. Philanthropic success and the conditions creating that success can vary among organizations. However, there are common best practices that all high-performing development operations must possess in order to achieve sustainable, long-term success. Understanding that CBBEP wishes to expand and diversify its funding sources, our recommendations are based upon these best practices: 1) The systematic identification and attraction of adequate numbers of prospective donors with sufficient giving capacity to support organizational goals. Major gifts are the most critical component of significant fundraising; however, a broad base of loyal donors/supporters is also important to long-term success. 2) Sufficient staff with the skills and experience to systematically cultivate and solicit prospects within defined timelines. 3) Systematic, methodical, and manageable disciplines to push fundraising activity, assure focus, follow-through and gifts. These disciplines include prospect identification and research, management of the cultivation of prospects to ensure solicitation of the right prospect for the right amount at the right time. 4) Cultivation and stewardship opportunities need to be in place to educate, engage, and develop prospects as donors and investors in the organization. 5) A flexible, user-friendly donor management system is required to capture, sort, retrieve and report necessary information. 6) Successful fundraising requires involvement by organizational leadership the Executive Director, the board and the staff. 1
7) The case for support must be clearly articulated, compelling and urgent. Donors rarely give significant gifts to organizational need. The inspiration that motivates giving is generally focused on ways the organization can help its community, not how the community can help the organization. What great thing will happen if I give to CBBEP.. This assessment and its recommendations will touch on each of these issues. However it will focus in greater detail on those issues that are most critical to building a sustainable philanthropic program for CBBEP. Because this is a new endeavor and a new way of approaching funding for CBBEP programs, we will recommend steps that take into consideration your budget and staffing constraints with an eye toward full implementation in the future. 2
ASSESSMENT: KEY FINDINGS AND CONCLUSIONS Donor Cultivation CBBEP has good relationships with local companies and foundations, and has proven to be a trusted steward of philanthropic dollars. When CBBEP says it will do something, they will do it on time and on budget. CBBEP Board members are well respected and well connected to people who make funding decisions. They are well positioned to make introductions and to tell the story of CBBEP themselves. CBBEP staff members are experts in their fields and passionate about their subject areas. They are currently cultivating donors and seem willing to meet with prospects. Although the Coastal Bend area is limited with regards to funding partners, there still remains untapped potential for CBBEP. In addition, some of CBBEP s programs have national implications, leading to broader fundraising appeal. Staff CBBEP Executive Director is rightly looking to diversify funding sources and is open to new ways of operating to ensure capacity to grow. Staff members are eager for centralization of fundraising efforts and a better understanding of priorities. Staffing holes at the moment are an opportunity to add knowledgeable development personnel with other responsibilities delegated to consultants or contractors. Systems The Comprehensive Annual Work Plan is a highly beneficial tool and can be used to identify funding gaps and development priorities. Assuming this is a joint effort between staff and board, the process of putting together and approving the work plan serves an engagement function as well. CBBEP does a great job applying for and receiving state and federal funding, as well as a few private foundation and corporate gifts. Currently, each department head is responsible for writing and reporting and meeting deadlines. There was a consistent theme among CBBEP department staff that they were responsible for raising their own budgets. 3
The staff would like to see a centralized tracking system for grant deadlines and reporting deadlines and would like help in preparing those documents. Communications/ Education (as it relates to informing new supporters) Efforts to streamline external communications were made in late 2014. The Education team does a great job at providing opportunities for teachers and administrators to learn more about Nueces Delta. (Breakfasts etc.) All senior staff members are called upon to speak to community groups on a regular basis and represent CBBEP very well. Uniform and consistent promotional material, across departments, would serve CBBEP better as a whole. The web site needs to be updated. The communications position at CBBEP is vacant. This vacancy presents an opportunity to creatively explore options for projects. Donor Management System How are donors tracked and acknowledged now? Paypal on website this could be updated and should be if CBBEP decides to embark on a campaign. Leadership Involvement Leadership on the Board is very supportive of CBBEP staff recommendations to expand development efforts. The board has broad reach, i.e. members come from different professional backgrounds, and also represent the geographic areas served by CBBEP. The board participates in meetings and takes an active role in decision making. Board members have an annual giving requirement of $7,500 (edit: $75,000). Increasing this amount should be a consideration but it would need to come from the board and be unanimously approved by the board. Case for Support The mission of CBBEP is impactful, but not an easy one to tell. 4
For those not familiar with CBBEP, it might seem that it is a federal or state-funded program and not reliant on local funding and participation. Even some of CBBEP s communication pieces refer to a national program which can be confusing if the reader does not delve deeper to discover that CBBEP is a local 501(c)3 organization. While it is important to acknowledge CBBEP s history and origins as an EPA program, we feel the story can be communicated more effectively. Each program has its own case for support that it presents to funders. Since the program heads typically write their own proposals, there is not a uniform approach to the description of CBBEP. It would be helpful to have templates for all to use, with an agreed upon, updated case statement for the organization as a whole. 5
KEY FINDINGS AND CONCLUSIONS Culture of Philanthropy CBBEP does not have a culture of philanthropy. It could be said that the Board Chair does not embrace a culture of philanthropy for CBBEP, but does seem very passionate about moving the cause forward. CBBEP has received grants as a result of Board member involvement, but those relationships do not seem to be transferred to the organization where they can be cultivated and stewarded to more significant gifts in the future. CBBEP lacks an awareness of the role of fund development and cultivation for continuing and growing relationships with donors. Board giving is perceived as a source to support the budget rather than a vehicle to advance the organization s mission and leverage additional funding. CBBEP recognizes government funding partners on its web site, but does not recognize corporate support. CBBEP does, however, do a good job at highlighting corporate partnerships on its Facebook feed. Infrastructure Current staffing structure does not include fund development. Our recommendations to address this absence follows. This is not terrible news. Many organizations with ineffective development staff have to start over and redesign. CBBEP can start fresh and we can design an infrastructure that is effective for your organization, at this particular time. The Board, Council, and Teams, (and CBBEP Foundation) can be confusing to an onlooker and creates a vision of bureaucracy which further enhances the government entity appearance. This is the culture of CBBEP and it serves an important purpose. It could be presented in a more user-friendly way in marketing materials and web site. Opportunities Opportunities abound! With concentrated effort that does not burden program staff, a fund development plan can guide CBBEP to higher contributed income, more funding partnerships, and the ability to fulfill its mission. Community engagement. Several staff members are involved in proactive community engagement: speaking, serving on boards, hosting meetings and information sessions. All of those touches should serve CBBEP. CBBEP should be capturing names and emails for further communication and possible donation solicitations. Visible presence. All of CBBEP s programs have a visible presence in the community. We believe this presence can be enhanced and will help your name recognition and, 6
subsequently, donor recruitment. CBBEP s Board Chair is not a fan of marketing and visible presence, but without it CBBEP cannot embrace a culture of community philanthropy. Opportunities exist to raise the organization s visibility, but the support of board leadership is important. Mission-driven action. CBBEP s mission is not just important, but it is CRUCIAL to the success and survival of the Coastal Bend s citizens way of life. People could disagree with a method here and there, but no one can dispute the value of CBBEP s existence and the benefits of its success. This is not a statement that can be made by many organizations. CBBEP is THE community leader on environmental issues, which is the heart of the Coastal Bend region. 7
RECOMMENDATIONS Prospect Lists & Grants Calendar Cate+Proctor will research and organize a list of prospective donors for support and create a grant calendar for proposal submissions. The information we provide will include: Name and contact information for prospect (we will also include current donors) Deadlines and requirements, if any Board members and/or key employees Cultivation Plan our recommendations on how to enhance the opportunity. (For example, some foundations prefer a personal meeting or site visit while others want only the application. For some foundations, a connection to a board or family member is almost a necessity and we will give suggestions of how board development could help). Infrastructure Plan as it relates to the spreadsheet we can help devise a system within the office of tracking and assigning communication and deadlines to ease the burden on program staff and to ensure follow-through. This should be a first step for CBBEP. There is a lot of low-hanging fruit and we should develop an overall funding plan and strategy for each prospect. Board Education It could be very useful to describe Best Practices in Fund Development to your Board. They can review the advantages and opportunities of broadening CBBEP s base of support to include more local, private funders. They would also learn about the importance of careful donor cultivation and stewardship, and the important role that they play as board members. Some of your board members may serve on other non-profit boards and could be familiar with elements of fund development. Other may be completely new to the concept. It is imperative that they support a new strategy and understand it. Staffing Please see attached job descriptions for development staff. These duties can be assigned to current staff members, and we can help with that. CBBEP might consider a staffing plan that includes a Development Director or Development Officer in the future. We believe you have an immediate need for a grant writer. C+P can serve as your contract grantwriters. Capital Campaign We believe that there is great opportunity in starting a funding campaign for the Nueces Delta Preserve Master Plan, including the construction the Estuary Learning Center. Although it certainly would be easier to have board leadership privately ask a few donors to fund the educational building, CBBEP would miss out on the opportunity to introduce itself to a wide spectrum of potential supporters. 8
The capital campaign gives you an excuse to launch CBBEP and its leaders into the world of fundraising. Capital campaigns have an amazing effect on organizations if stewarded correctly, campaign leadership and donors will be your new enthusiastic friends and have a vested interest in your success for years to come. It is a big step and requires 100% approval and participation from your staff and board (most importantly). Steps to a campaign would include: Identifying Campaign Leadership Chairs or Co-chairs and Steering Committee Members. Campaign Plan developed with consultant, staff and campaign leadership, the plan includes a timeline and budget, naming opportunities, and giving guidelines. (Staff responsibilities and processes will be outlined separately.) Case Statement Identify prospects and assign lead solicitors Sequential fundraising lead gifts, board gifts, major gifts, small donations Groundbreaking never before at least 50% has been raised. Individual Giving After much thought, we do not believe that CBBEP would be a good match for a membership program. You have some competition CCA, the science and art museums, and others, and benefits of membership would be hard to define. We recommend taking a targeted approach: Identify individuals who are likely givers (already giving to similar organizations), friends of friends (board members, etc.), community leaders and philanthropists, and wealthy neighbors. Solicit with a targeted ask for an identified goal. For example: Bays Legacy Circle (or something catchier) help us raise $100,000 by December 31 so that together we can.. (specific action or set of actions). Sponsorship Opportunities We do recommend that you seek additional sponsorship partners. Available sponsor opportunities could be: Youth education materials/packets Boat needs for Coastal Waterbird Program Corporate Sponsors/Partners for Student Teachers Equipment Sponsors for Land Management Program Media/Billboard Sponsors for summer campaigns Eyes on the Islands Program Staff Positions or Interns C+P can help you develop sponsorship packages that would include a menu of options available for different sponsorship gifts. This is a good way to give your board members a tool to use when they visit colleagues or are asked to speak about CBBEP. 9
Implementation Team CBBEP has implementation teams to assist and advise on program areas. Most non-profits with successful development programs likewise have a Development Committee or Fund Resources Committee made up of board members and other community volunteers with an interest in fundraising and marketing. We recommend that your board consider adding a Resources Development Implementation Team to the mix. Other Thoughts One area that we have not addressed is the Baffin Bay partnership. This is a project that is very important to the Coastal Bend area and a particular passion of CBBEP s Board Chair. I am not clear if this program would take priority over the Nueces Delta Preserve campaign. So this leads me to an important recommendation. The CBBEP Annual Work Plan outlines perfectly the current projects being undertaken. Does it reflect the funding priorities of the organization? If not, does that list of priorities, in order of their importance as decided by the board, exist in another form? If CBBEP received a $10 million gift from a wealthy donor whose only stipulation was that it had to be earmarked within a month, how would CBBEP allocate that funding? This is a good exercise to have with the Board and it helps focus attention on what is truly important to the organization as a whole, not just to one staff member or one board member. Deciding priorities also helps drive funding requests and helps facilitate discussions about whom to ask for which project. A board approved priority list helps alleviate the appearance of favoritism between program staff. It also puts everyone on the same page and delivering the same message. Imagine a Board member meeting with a very important prospective donor that you have identified as the perfect match for the Nueces Delta Preserve campaign, and instead he talks about the crucial importance of Coastal Waterbirds. Or, the other way around. The Annual Work Plan or an updated Bays Plan may serve this purpose. However, it was clear that different parts of the organization see priorities in different ways. 10
NEXT STEPS 1) Prospect List: I am attaching a prospect list of environmental funders in Texas. If you decide to retain our services, C+P will populate the areas on the spreadsheet that will form our strategy for approaching funding. 2) Grantwriting: We propose that CBBEP update its case statement and proposal templates. 3) Staff/Board Training: to review fund development practices and to seek support. 4) Discuss campaign idea and funding priorities requires staff support and board approval. PROPOSAL We would appreciate the opportunity to work with CBBEP to implement these suggestions or to revise a plan that works best for you. The cost of our monthly retainer would be $4,000 per month and would include weekly phone calls (as many as necessary) and one on-site visit. After the first month of developing the case statement and sponsor packet, the monthly retainer includes: up to three grant proposals/reports to private funders (government grant writing will be priced separately) cultivation strategy for each prospect and communication with board member(s) on that strategy setting appointments with potential funders & staff (and board members when appropriate) tracking responses and follow-up If CBBEP decides to investigate a capital campaign, C+P will prepare another fee structure proposal. Capital campaigns require a different level of involvement. If this outline seems agreeable, C+P will prepare a contract that will contain more detail regarding timelines and deliverables. Thank you again for the amazing opportunity to meet you, the staff, and board members of CBBEP. I believe there is much potential to include private donors in your funding strategy with just a few tweaks in your current operation. I would welcome the chance to help you. Elizabeth Proctor Cate+Proctor Fundraising 2421 Tangley #106 Houston, TX 77005 713/705-0304 Elizabeth@cateproctor.com 11