CAPITAL CAMPAIGNS AND ANNUAL GIVING

Two Models for Success

Payne, Forrester & Associates790 Farmington Avenue

Suite 4BFarmington, Ct 06032

860-409-2560

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ANNUAL GIVING DEFINITION

• Programmatically and systematically solicited each and every year. Recurring, reliable income, which in the aggregate, is built on repeatable gifts and grows steadily over time. For this presentation, Annual Giving refers to development programs seeking recurring gifts of $1,000+

• It is not uncommon to expect annual giving programs to double in size every five years if potential support is as yet untapped.

• More expensive on average than campaign gifts, requiring labor intensive effort sustained over time.

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CAMPAIGN & CAMPAIGN GIFT DEFINITION

• A Campaign is special and intensive fundraising effort directed at achieving specific goals within a specified period of time. It should flow from a process of organizational planning, be based on a solid leadership commitment, and add value to the organization’s mission.

• Campaign gifts are solicited as one-time commitments, frequently payable over a multi-year period, and often are of a significant size for the donor, contributed from assets rather than income. Campaign gifts can be expected to take from 3 to 9 months to develop.

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TYPES OF CAMPAIGNS• Capital Campaign: goals for capital purposes, ie.

Facilities, equipment, permanent endowment

• Special Project Campaign: single, limited objective not impacting organizational and leadership issues usually associated with capital campaigns

• A comprehensive Campaign: includes goals for multiple purposes. It can include capital, special purposes expendable, and current purposes – increasingly, annual funds are included in comprehensive campaign goals

• Emergency Campaign: responds to unplanned events

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WHYY & WNED GENERAL PROFILE

WNED

$13M operations

37000 members

92 full-time employees

7/2006 – date started major giving program, following completion of campaign

66 major donors [$1,000+]

$104,000 major gift total

$1,575 average gift

WHYY

$29.8 operations

105000 members

155 full-time employees

1999- major giving program launched

300 major donors [$1,000]

$657,000 major gift total

$2,200 average gift

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WNED & WHYY CAMPAIGN PROFILE

WNED

• Did not have a major giving program before campaign

• Campaign complete

• 4.5 yrs: 1/2002 – 6/2006 • $15.0 M goal• $16.9 M raised• 4 gifts of $1M+ received (not including gov’t)

WHYY

• Had robust major giving program before campaign

• Campaign in year 3

• 5.0 years: 7/2004 – 6/2009

• $50 M

• $23 M to date

• 3 gifts of $1 M+ received

(not including gov’t)

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CAMPAIGN GOALSWNED – 100%

Capital WHYY –

Comprehensive

Purpose Amount

Equipment $12,000,000

Program Development

3,000,000

Total $15,000,000

Purpose Amount

Equipment $13,500,000

Learning Lab 7,500,000

Annual Support 10,000,000

Working Capital 3,500,000

Program Initiatives 2,000,000

Endowment 13,500,000

Total $50,000,000

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ANNUAL GIVING MUST GO ON!

WNED - “Annual Giving” Paramount

• Emphasized increased recognition and appreciation of our annual donors

WHYY– “Campaign Gift” Paramount

• Emphasized ways to increase annual support for campaign recognition

EDUCATION OF PROSPECTS IS CRITICAL & CHALLENGING!

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KEY CHALLENGES SUSTAINING ANNUAL

SUPPORT DURING CAMPAIGNWNED

• Identify new prospects

• Engage volunteer leadership

• Avoid confusion by only soliciting larger donor base at end of campaign

WHYY

• Engage volunteer leadership for both annual giving AND campaign

• Staffing up for the campaign period

CAPITAL CAMPAIGN TEAM STRUCTURE

Board Chair (Campaign Chair) & Capital Campaign Leadership

Team [6 volunteer leaders]

President & CEO [Involved in 95% of solicitations]

Vice President Foundation & Community Development

(Campaign Manager)

Special Projects (auction) Director (Public Phase operations director)

Major Gifts Manager (Annual and campaign solicitations, dev.

of presentation materials)

Canadian Major Gifts Manager (only new hire – Canadian

solicitations)

Manager of Community Development (Campaign

billing and recognition)

Membership Associate (Public phase data entry, acknowledgment & billing)

= Additional campaign responsibilities or new position

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POST-CAMPAIGN DEVELOPMENT ORGANIZATIONAL STRUCTURE FOR MAJOR GIFTS

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WHYYCOMPREHENSIVE CAMPAIGN

TEAM STRUCTUREBoard

Campaign CabinetMercury Society

Committee[Annual Support]

Major Giving Manager and Major Giving OfficerCampaign Manager

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CAMPAIGN & ANNUAL GIFT SOLICITATION COORDINATION

NEW

Top Campaign Prospects

Annual Donor Prospects

Donor Prospects

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MANAGING PROSPECTS FOR CAMPAIGN

& ANNUAL GIVINGIndividuals

CorporationsFoundations

Coordinate Strategies for Major Gift Prospects of All Types

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A CLEAR & COMPELLING CASE FOR SUPPORT

• For Campaign: One-time investment helps to propel organization to new level

• For Annual Support: Ongoing support helps to ensure mission carries forward into future

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BOARD-APPROVED POLICIES & PROCEDURES

• Gift Counting for Campaign and Annual Giving – including start date, pledge period, types of gifts, purpose of gifts, combining (or not) of gifts, clear understanding and acceptance of differences between financial and campaign counting

• Donor Recognition for Campaign and Annual Giving, including permanent or temporary recognition, publications, listings, announcements, etc.

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MYTHS ABOUT CAMPAIGNS

& ANNUAL GIVING1. Campaigns cannibalize annual giving

2. Campaigns can be added on to current annual giving programs with no additional resources with no consequences

3. It’s okay to skip the campaign planning phase

4. Other?

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KEY SUCCESS FACTORS1. The organization and its leadership are visible and credible

2. A clear and compelling case for support, based on substantive plans

3. An adequate number of realistic donor prospects to achieve the stated dollar goal

4. A sufficient number of top volunteers, including to participate in solicitation

5. Critical issues identified and resolved

6. Policies and Procedures in place for gift counting, donor recognition, etc.

7. A strong supporting staff and budget resources to support the volunteer effort

8. An internal and external “climate” conducive to fundraising