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![Page 1: Afp Mn Speech Sept 2010 Updated](https://reader035.fdocuments.us/reader035/viewer/2022062615/548cb78cb47959351e8b4788/html5/thumbnails/1.jpg)
SHAPING THE DEVELOPMENT PLAN IN A CHANGING PHILANTHROPIC LANDSCAPE
A PRESENTATION TO THE LAKE SUPERIOR FUND RAISING
EXECUTIVES
John A. Martin, CFRE
MGI Fund-Raising
Consulting, Inc.
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Begin with a Plan
The key to successful fundraising begins with a solid plan, and then working that plan. The presentation will stress not only the need for a diversified approach to fundraising but also the “Tips” involved in shaping the plan to develop a sustainable and competitive development program.
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Diversify and explore alternatives
Why nonprofit organizations need to diversify their fundraising plans
Strategies to create and shape a diversified fundraising plan
How to apply different fundraising strategies to fit the needs of different funding sources
How to “tweak” the plan and rise “above the clutter” in a competitive and changing fundraising landscape
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How did we get here and how do we move forward?
Understand the philanthropic marketplace and the environment in which your organization competes
Change the Paradigm and adhere to Best Practices
Create a Culture of Philanthropy
Achieve Brand Pinnaclewww.mgifundraising.com 1-800-387-
9840
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2009 charitable giving Total = $303.75 billion ($ in
billions)
Source: Giving USA 2010www.mgifundraising.com 1-800-387-9840
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2009 Giving Summary
Total giving = $303.75 billion. Decrease of 3.6 percent (-3.2 percent adjusted for
inflation). Individuals remain the single most important source. Individuals + charitable bequests = 83 percent of
total. Foundation grantmaking = 13 percent of the total.
About half of independent, community, and operating foundation giving is from family foundations.
Individual + Bequest + Family Foundations = 89 percent.
Corporate giving is an estimated 4 percent of the total.
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Recessions in dark gray: 1969–70; 1973–75; 1980; 1981–82; 1990–91; 2001; 2007–2008
Inflation-adjusted dollarsCurrent dollars
Total giving, 1969–2009
$ in billions
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Giving by individuals, 1969–2009
$ in billions
Current dollarsInflation-adjusted dollars
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Types of recipients of contributions, 2009
Total = $303.75 billion ($ in billions)
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5 Most Popular Causes Americans Support (in billions) Religious or faith
based ($100.95 – 33%)
Education ($40.01 – 13%)
Human Services ($27.08, 9%)
Health ($22.46 – 7%) Public Society-
Benefit ($22.77 – 8%)
2009 figures, Giving USA 2010www.mgifundraising.com 1-800-387-
9840
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Changes in giving by recipient organization
Current $Estimated giving increased in subsectors associated withprovision of services to those in need. It decreased insubsectors where at least some funds are raised forbuildings, endowments, and other long-term purposes.
Giving USA estimates growth in giving to: International affairs 6.2 percent Health 3.8 percent Human services 2.3 percent Environment/animals 2.3 percent
Declines in giving are estimated for: Religion -0.7 percent Arts, culture and humanities -2.4 percent Education -3.6 percent Public-society benefit -4.6 percent
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Where Does Philanthropy Stand?
An unstable economy has shaken both non-profits and their donors to the core.
Stock holdings have radically declined in value with some companies losing up to 90% of their value. Every company and executive has been affected in some way.
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The Past Projects the Future
Corporate giving is most immediately affected in an economic downturn: corporate foundations are funded with annual profits. Most corporate foundations have been affected by the economic downturn – the effects will be felt for years to come.
Foundation giving tends to scale down over a three year period: giving budgets usually represent a three year rolling average.
Individual giving has the greatest resiliency and donors respond in difficult times.
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Corporate Giving and Today’s Economy
45% of businesses surveyed in 2009 (Corporate Contributions Report Survey, February 2009) said they had already reduced the amount they plan to donate this year.
Another 16% were considering cuts. 35% of companies said they would make fewer grants this year
and 21% said the grants they made would be smaller. As they complete their giving budgets for, corporate officials
said they were most concerned about financial constraints, the recession and the alignment of their giving with their business’s needs.
Among types of gifts, sponsorships of events take the biggest hit, 55% of businesses said they would cut back on that form of giving.
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Foundations and the Economy
Fewer Foundations Anticipate Decreasing the Number and Size of Grants in 2010. The vast majority of foundations responding to the Foundation Center’s latest “Foundation Giving Forecast Survey” anticipate making no changes in their grantmaking strategies in 2010. In contrast, a year ago close to two-thirds of respondents (63 percent) expected to reduce the number of grants they awarded and/or the size of their grants. Nonetheless, the shares of foundations that anticipate reducing the number and size of their grants in 2010 continue to be larger than the shares that anticipate increases, reflecting continuing repercussions from the economic crisis.
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Individual Giving and the Economy
Despite the significant downturn in economic conditions in recent years, the percentage of U.S. adults opening their wallets to charitable organizations has hardly diminished. More than four in five Americans continue to say they donated money to a charitable cause or organization in the past 12 months -- now 84%, compared with 87% in December 2005.
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Volunteering and the Economy
According to the Gallup data, fewer Americans part with their time than their money on behalf of charity groups. Sixty-four percent of Americans currently say they have volunteered their time to a charity in the past 12 months, similar to the 62% recorded in 2005. Americans still prefer to give of their money rather than their time.
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Fund Raising Professionals Concerns
Keeping professional fund raising staff and volunteers motivated.
The impact of reduced endowment income on operating budgets
Some foundation officers are more concerned about ensuring the viability of non-profit institutions than launching new initiatives.
Institutions are being forced to develop contingency plans in light of possible reductions in philanthropic support.
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Fund Raising Professionals Concerns
The reluctance of some non-profit leaders (CEOs and trustees) to solicit, or even contact donors right now.
The inclination of some non-profit leaders to retrench when the desired approach by experienced professionals should be to move forward strategically.
Donors appear to be waiting for the stabilization of the markets to assess the crisis’ impact on their personal holdings.www.mgifundraising.com 1-800-387-
9840
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Current Impact of Economy
New donor acquisition from direct mail is down considerably in some institutions.
Significant negative impact on some direct mail programs.
Some galas and dinners are experiencing 10 – 15% fall off from the previous year.
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Strategic Opportunities
Despite the economy, there are strategic opportunities to explore. People are more empathetic. The media are listening. Large gifts are more powerful
and get more attention. Many people have funds to
give. Prospects will come to
events, discussions, and site visits. They want to stay informed, even if they can’t respond immediately.
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Giving Motivations
81.2% of wealthy donors said they are most motivated to give by the notion of “giving back to the community.”
70.7% gave because they “support the same organizations or causes annually.”
70.4% give because of their “social beliefs.”
48.1% gave because they were asked!
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Why People Don’t Give Anymore
Nearly 60% of wealthy households who stopped giving to a charitable organization attributed their change in philanthropic behavior to no longer feeling connected to the organization.
Merely 14.7% said that they stopped giving because of “lack of finances.
42.3% said they received too frequent solicitations from the organization and 8% felt they weren’t being properly recognized for their donations.
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Why People Don’t Give Anymore
70% of donors give to the same organization year after year.
In 2007, 38% of donors stopped supporting a charitable organization, with more than one-quarter (26%) of those surveyed discontinuing support for at least two organizations.
19% stopped giving to four or more charities.
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Top 5 Reasons Why People Give
1. Because they are asked, or presented a giving opportunity.
2. To give back to their community
3. Compassion for those in need
4. Personally believe in the cause
5. Affected by the cause
This is based on an analysis of research in the field of philanthropy – including Indiana University’s Center on Philanthropy, Independent Sector, the University of Pittsburgh and others.
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Need to Change the Paradigm
Thinking Outside the Box
Identify the Box
Understand the Role of Each Type of Giving
Demonstrate the Way Donors Can Make a Difference Today & In the Future www.mgifundraising.com 1-800-387-
9840
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TRADITIONAL DONOR PYRAMID Old Paradigm
SPECIAL EVENTS
ANNUAL GIFTS
MAJOR GIFTS
PLANNED GIFTS
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MajorCapital Campaigns
Annual Campaigns
Special Events
INTEGRATED PROGRAMNew Paradigm
Planned & Bequest
DONOR
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VALUE-BASED GIVING
Philanthropic Gifts Are a Transfer of Values
More than Dollars, Gifts Reflect Values
Expressions of Values Increase Gifts
Worthiness based
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IMAGINE
Understanding Our Prospects
Finding
The right things to sayThe best way to askWhat to ask for & how much
Learning the “Secrets” of how to Increase the “Desire” & “Intent” to Give
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CREATE A CULTURE OF PHILANTHROPY
Positive Perspective on Philanthropy & Fundraising—Integral to Mission
Enthusiastic Giving from Leadership & Staff
Positive Messages about Giving in Communications
Gracious Donor-centered Community
Having Fundraising Success
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ACHIEVE BRAND PINNACLE
Positive program whereby your institution expresses its goals through branding
Trustworthy brands are becoming the donor’s roadmap through a giant worldwide bazaar in which tens of millions of other sellers are trying to lure your donors away
Positioning statement – avoid confusing the donor with multiple themes and taglines
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MOVES MANAGEMENT PROCESS
CEO/Vice President Major Gifts Committee Major Gift Director (Moves
Manager) Development Professionals Prospect
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CEO’S ROLE MOVES MANAGEMENT
Articulate the Vision Promote Quality
Management Lead Role in
Identification, Discovery, Cultivation, & Solicitation of Prospects
Motivate Trustees, Directors, Advisory Board, & Volunteer Leadership
Promote Interaction & Cooperation
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Key Components of a Development Plan
The key components of a development plan are: • development goals
• strategies for reaching the goals (preferred, available)• analysis of potential by constituency and by strategy• action plan and timetable for each strategy, with
income benchmarks• assignment of responsibilities for strategies and
individual solicitations to volunteers, staff, others• marketing needs for each strategy• budget and funding for each strategy
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Capital Campaign Planning and the Current Economy
Most organizations are in one of three stages of campaigning: Initial planning Just Started Well underway
Key issues to be considered Financial Goals Timing Case priorities Prospect Development Gift payment structuring Donor engagement, solicitation
and communication strategies.www.mgifundraising.com 1-800-387-9840
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Should we go/not go?
List GO and NO GO considerations:
Financing availability Case relevance and
urgency Prospect pool capacity Leadership availability Timing Issues
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Campaign Planning in this Economy
Inclusive Planning Involve most influential
trustees and some major donors in your planning activities.
Bring your prospects along with you.
Include prospects in your campaign planning.
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Timing Issues
Timing issues to consider: Extended planning phase Longer campaign timetable Flexibility with public kick-
off announcement and definitive ending date
Urgency of campaign Some campaigns have
greater urgency and the case for support in this economy may be more compelling and supportable despite the economic factors
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Case Issues
Case considerations in this challenging economy: Program support is
compelling Building projects
dependent on financing Shovel-ready projects are
good for economic recovery
Endowment is less attractive
Challenge and matching gifts strengthen case
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Case Issues
Some case issues are particularly compelling right now! Public higher education Human rights Wildlife Conservation
and climate change Domestic hunger relief Medicine/innovation/
science Global health
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Well Underway
If you are WELL UNDERWAY into a campaign know that: It will take longer You may have to revise your timetable You should reorder priority prospects You may have to revise case
statement, emphasizing critical programs and de-emphasizing endowment
You might offer to restructure gift payments
You should seek multi-year commitments
You should always publicize your good news!
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General Development Strategies
1. Focus Mission and Case2. Develop a short-term Action Plan3. Increase Activity4. Increase Prospect Research5. Prioritize Prospects6. New Gift Structures7. Include Beneficiaries in Donor
engagement
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General Development Strategies (Continued)
8. Targeted Requests9. Publicize New Gifts10. Challenge Gifts11. Introduce Payment Flexibility12. Explore Diversification13. Motivate14. Share Philanthropic Information
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Tip #1
Reaffirm your mission and continuously remind donors of the impact and urgency of philanthropic support
Tell your story in a way that inspires investment despite or because of the challenges presented by the economy
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Tip #2 Increase activity including visits
and briefings with donors and friends, and consistent communication.
Your strategy is to “out hustle the economy” by making more visits and working harder to reach people.
Keep your long-term donors close and your new donors even closer.” These visits will tell you three things Who is ready to give Who needs more time and roughly
how long what elements of your case
resonate among donors.
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Tip #3
Develop a short term action plan.
Direct contact and visits with top donors
Special gatherings and forum (s) among donor and prospect network
Create a 2 year development plan
Immediate financial priorities Prospect sequencing Support diversification
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Tip #4
Stay in touch. Now is the time to intensify cultivation efforts. Make personal calls on prospects and donors, letting them know how important your work is and how your organization is successfully facing current demands and how important they are. Let them know you won’t be calling on them for a gift until a more appropriate time…but you will be coming back.
Remember 60% of wealthy households who stopped giving attributed their change in philanthropic behavior to no longer feeling connected to the organization
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Tip #5
Retain your current donors as a central strategy
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Tip #6
Reactivate your Past Supporters (SYBUNTS)
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Tip #7
Monitor shifts in timing and behavior
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Tip #8
Correlate Geography and the Economy
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Tip #9Correlate Industry and the Economy
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Tip #10
Getting the Right Story for Donor Acquisition.
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Use new technologies to tell your story
Tip #11
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Tip #12
Use new technology to secure and collect pledges.
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Tip #13
Recognize donors. Pay greater attention than ever to the aggressive stewardship of your present donors. Let them know how important they are to you. Work with a small task force (staff and volunteers) to design a detailed and structured program. Put it in writing. How many times can you thank your donors in a year?
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Tip #14Dare to Ask!!!
Personal (face to face
solicitation – by a carefully
selected and well-trained
volunteers who have
made a financial commitment
Campaigns fail raise above
the “clutter” because they
fail to “ASK”.
www.mgifundraising.com 1-800-387-9840
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John A. Martin, CFRE
President and Managing Partner, MGI Fund Raising Consulting, Inc.
Direct Line: 612-801-5149 Toll Free: 800-387-9840 Email: [email protected] Web Site: www.mgifundraising.com
Thank You!www.mgifundraising.com 1-800-387-
9840