Fundraising I: Tried & True Fundraising I: Tried & True Keys to SuccessKeys to Success

6th Annual Club MACJune 15, 2006

Carole V. Rylander, CFRErylander associates214.348.9086 carole@rylander-tx.com

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Keys to Fundraising Success

Organizational Readiness

Adopting a Marketing Mentality

Creating a Compelling Case for Support

Establishing Benchmarks & Measuring Performance

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Begin with the end in mind. -- Stephen

Covey

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Fundraising Essentials

A Good Cause (what will change)A Natural Constituency (who cares)A Time Frame or Deadline

(urgency)A Dollar Goal (how much is needed

to create the change)?

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Critical Concepts

Synergy

KeysPlanningSystems

Funds Development is a process, not simply an activity

Relationships & Matching

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Key #1:Strategic Planning

Vision

Mission

Strategic or Long Range Plan

Goals and Objectives

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Fundraising Follows thePlanning Process!

Fundraising & Operating Action Plans

Strategies and Tactics

Budget

Case Statements

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Mission, Vision, & Strategic Planning

A primary responsibility of the BoardVerifies the relevance of the

organization to the communityStaff is involved, especially with

action planningThe process of creating the

plan is as important as the outcome

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Key #2: Adopting a Marketing Mentality

Constituency Mapping

Jargon

Five Steps to Marketing

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Constituency Mapping

Theory of Concentric Circles

Importance:Divides a Large, Diverse

Constituency Base Into “Like-Minded” Groups

Identifies Each Group’s Level of Involvement

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Constituency Mapping

Importance (cont.):

Acknowledges Each Group’s Differing Perspective and Language

Enables the Delivery of Focused Messages Designed to Stimulate a Specific Response

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Constituency Mapping

Importance (cont.):

Ensures that Resources and Efforts are Directed Towards Groups Appropriately - According to the Value of their Response

Constituency Mapping Exercise

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Constituency Mapping

Step 1 Identify all “like-minded” groups in your organization’s universe

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Constituency Mapping

Like-minded groups are not just “individuals,” but groups of individuals who : Have the same relationship to the

organization, Use the same language, such as

physicians, teachers, city council members, or

Interact with your organization in the same way

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Constituency Mapping

With financial resources Who provide earned income (fees,

tickets, etc.) With whom your organization

partners (a non-financial, strategic relationship)

Step 2 Using three differentcolors, circle constituents:

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Constituency Mapping

Some constituents will have all 3 colors of circles.

Step 3 Create a legend so you’ll know what your colors mean.

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Jargon

Definitions:The technical terminology or

characteristic idiom of a special

activity or group

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Jargon

Definitions: (cont.)Obscure & often pretentious

language marked by circumlocutions and long words

A confused unintelligible language

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What Jargon Do You Use?

Identify Jargon:Create a ListReview Your Document(s) & Circle

Jargon

Redefine JargonIn Every Day Words

“Grandmother” Principle

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Marketing

Marketing is all about exchanges.

Marketing is a process that helps

you exchange something of value

for something you need.

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Selling vs. Marketing

SELLING MENTALITY is Rooted INSIDE the Organization

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Selling vs. Marketing (cont.)

MARKETING MENTALITY is

Based OUTSIDE the

Organization—In the

Marketplace

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Marketing: Step One

LISTEN to your Constituency!

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Marketing: Step Two

SEGMENT Your Market

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Marketing: Step Three

STRATEGICALLY TARGET

Those Segments with the

Highest Potential

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Marketing: Step Four

POSITION the organization:What does it do well that

matters?

How does it compare to what other organizations do?

How does it distinguish itself?

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Marketing: Step Five

COMMUNICATE the Special

OPPORTUNITIES your

Program Presents in Terms

That Matter to the Target

Groups

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Marketing: per Peter Drucker

“The aim of marketing is to

know and understand the

customer so well that the

product or service fits them

and sells itself.”

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A: By creating an urgent and compelling Case for Support!

Q: So, how do I develop effective marketing messages that motivate potential donors to action?

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Key #3: Creating a Compelling Case for Suppot

Definition:

A carefully prepared document

that sets forth, in detail, the

reasons why an organization

needs-- and merits-- financial

support . . .

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Case Statement: Definition

...In the context of the “case is bigger than the institution,” it documents [the organization’s] services, human resources, potential for greater services, current needs, and future plans.

–From Glossary of Fund Raising Terms,a publication of AFP

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What We Hear

All The Time…

vs.

A Compelling Story!

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There is no perception

unless there is contrast.–Ralph Coverdale

in Risk Thinking

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The Case Statement Is. . . . .

An internal document

An investment prospectus

Prepared by the development office

The basis for all marketing, communications, program, & development materials

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The Case Statement Is. . . (cont.)

Both rational and emotional

Optimistic

Brief

Easy to interpret and remember

Larger than the institution and has broad appeal

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The Case Statement Is. . . (cont.)

The single most important document in the fundraising effort!

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Elements of the Case for Support

1. What is the organization’s mission?

2. What has the organization accomplished thus far? (its history)

3. What does the organization do and how is it structurally governed?

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Elements ofthe Case for Support (cont.)

4. What is unique about your organization or proposed project?

5. What is the problem? What need does the program for which you are seeking support address?

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Elements ofthe Case for Support (cont.)

6. Who is affected?

7. What solutions does the program offer?

8. What methods will the program offer?

9. What results have been achieved thus far?

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Elements ofthe Case for Support (cont.)

10. What resources and funds are required and how will they be used?

11. What endorsements and support have already been provided for the program? How much? From whom?

12. What is in it for the donor?

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Giving Opportunities(What’s In It for the Donor?)Are drawn from the Case

Statement

Can Represent a wide range of appealing fundable Items - $50 to $25,000+

Fulfill Baby Boomers’ needs to know their gift provided specific tangible benefits

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Case Preparation

Written by one person

New rationales will emerge during process

Adaptable to many uses & formats

First draft—then edit, edit, edit

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Case Preparation (cont.)

Circulate draft

Adopt as a policy document

Update periodically

Use it with staff and volunteers

Create case statements for each program area

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Uses of the Case Statement

Provides common language for board members

Is the basis of proposals & brochures, as well as program & campaign materials

Assists in leadership & volunteer recruitment

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In Summary, A Case Statement

Is designed to:Substantiate an organization’s

opportunities and attributes,

Define benefits to the contributor, AND…

Stimulate a monetary response!

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In Summary, a Case Statement Is A Must:

The relationship between

programs, needs, and benefits to

donors must be communicated in a

persuasive “case” that motivates

the potential donor to action!

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Case Statement Handouts

Elements of the Case for SupportSamples:

The Case for the Building Program of Los Barrios Unidos Community Clinic

Los Barrios Unidos letter proposalThe Case for the Anita N. Martinez

Ballet Folklorico

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Key #4: Measuring Program Performance

Provides evidence of impact

Justifies the organization’s value

Directly links gifts to impact

Strengthens relationships with funders

Is essential for renewing gifts

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ProgramPerformance Metrics

Handout:Star/AmeriCorps Evaluation Plan

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To Learn More . . .

Association of Fundraising Professionals (AFP) 25,000+ members mostly in the US,

Canada & MexicoWeb Site: www.afpnet.orgInternational Conference attended

by 4,000+ in spring of each yearDallas Chapter = 300 members

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To Learn More . . .

Center for Nonprofit Management

Local organization whose mission is to increase the capacity of nonprofit organizations to serve the community

Web site: www.cnmdallas.org

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To Learn More . . . BoardSource:

is a 501(c)3 nonprofit organziation dedicated to improving the effectiveness of nonprofit organizations by strengthening their boards of directors.

www.boardsource.org

Individual membership = $139 year

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Thank you!