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Diversifying Revenue through Enhanced Fundraising Performance

June 3, 2011

Richard Tollefson, The Phoenix Philanthropy Group Joyce Millard Hoie, Raising Special Kids

Region 5 Parent Technical Assistance Conference

Your Issues and Questions

•  Role of the Executive Director •  Role of the Board of Directors •  How organizational capacity impacts

fundraising activity •  Effective strategies for fundraising success

Your Issues and Questions

•  Identifying donor prospects •  Making the ask •  Engaging staff, contractors, consultants •  Others?

Our Discussion

•  Charitable giving overview •  Why raise funds? •  Relationship management cycle •  Comprehensive fundraising program •  Foundation of fundraising •  Volunteer/staff roles and responsibilities

Our Discussion

•  Performance measures • What makes a successful fundraiser •  Case study – Raising Special Kids • Your issues and questions

Charitable Giving

2009 Charitable Giving = $303.75 Billion

$ in billions – All figures are rounded

Types of Recipients of Contributions

$ in billions – All figures are rounded

Total Giving, 1969–2009

The Number of 501(c)(3) Organizations 2000–2009

Why Raise Funds?

Why Raise Funds?

•  Belief in the organization – Mission – Vision – Values

•  Support programs and services

Why Raise Funds?

•  Increase brand awareness •  Engage constituent base •  Diversify revenue, increase financial stability •  Help ensure ustainability •  Impact those you serve

Relationship Management Cycle

Fundraising is NOT Sales

It is: •  Outstanding customer service

•  Mutually-beneficial relationships

•  Long-term partnerships and collaboration

•  Accountability

Relationship Management Cycle

Identification

Qualification

Cultivation

Solicitation

Stewardship

Renewal

Donor-centric

Comprehensive Fundraising Program

Components Include…

•  Special events

•  Sponsorships

•  Annual fund

•  Major gifts

•  Planned giving

•  Special initiatives or campaigns

•  Government grant and contracts

Giving Pyramid

Major Gifts

Special Events

Sponsorships

Annual Fund

Giving

Work donors up the pyramid

Expand the donor base

Planned

Return on Investment

Foundation of Fundraising

Underlying Assumptions

•  Long-term, mutually beneficial relationships

•  Accountability

•  “Moves management”

…all in a DONOR-CENTRIC approach

Foundation for Fundraising

•  Mission, vision, values •  Unique position •  Constituent relations •  Brand, marketing, communications

And…

Funding Priorities and Goals

•  Inventory, prioritize

•  Focus energy and work

•  Be realistic but assertive

•  Seek agreement throughout organization

•  Remain open to opportunities

Case for Support

•  Clear and compelling •  Relevant and urgent •  Appeal to different motivations •  Talk about:

–  Investments – Capacity-building – Growing and building for the future – NOT save a sinking ship or needs

Prospect and Donor Base

•  Gather leads from research, screening and volunteers

•  Build lists of key contacts and high potentials

•  Determine who to cultivate and ask

Leadership

•  Embrace the mission, vision, values

•  Ensure institutional responsibility

•  Be active advocates for the organization

•  Understand and participate in development

•  Lead by example

Infrastructure

•  Donor research

•  Moves management

•  Donor recognition and stewardship

•  Gift and pledge processing

•  Internal financial accountability

•  Performance measurement

Roles and Responsibilities of Volunteers and Staff

Volunteers

•  Are advisors and resources

•  Are advocates

•  Are financial stewards

•  Open “rolodexes” and doors

•  Key contact with prospects (sometimes)

•  Give AND get

Ideal Board of Directors

•  Lead by example

•  100% participation – At a level indicative of their leadership role

Staff

•  Provide information about the organization

•  Prepare proposals and letters

•  Develop strategies

•  Manage relationship cycle process

•  Manage internal processes

•  Support volunteers

Volunteer and Staff Relationship

•  Staff must prepare volunteers for success (and for when they will not be successful)

•  No successful fundraising operation is 100% staff driven

Performance Measures

Metrics

•  Dollars raised

•  Activity measures

•  Portfolio of prospects

•  Acquisition, retention, upgrade

•  Cost of raising funds, and…

•  Direct and indirect impact of operations

Cultivation and Solicitation Success

Cultivation and Solicitation Success

•  Make personal contact at highest level

•  Determine cultivation and solicitation team members and roles

•  Fully prepare the team, and yourself

•  Have outcomes clearly in mind

Cultivation and Solicitation Success

•  Prepare

•  Have contingency plans

•  Know and state your purpose

•  Ask leading questions

•  LISTEN

Cultivation and Solicitation Success

•  Be respectful of time, opinions, situations

•  Make the ask directly

•  Know what you can and cannot accept

•  Be accountable

•  Follow up

•  Bring to an appropriate close

•  THANK DONORS, start stewardship process

Case Study – Raising Special Kids

Raising Special Kids

•  Issues which lead RSK to explore philanthropic fundraising

•  Getting started •  Engaging a consultant

RSK – First Steps in Building Strong Fundraising Program

•  Assess the fundraising operation •  Identify initial fundraising priorities •  Create case for support •  Apply logic model to strategic plans •  Develop initial and long-term fundraising plans •  Identify initial donor prospects •  Assist with Board development

Your Issues and Questions

A Review… Your Issues and Questions

•  Role of the Executive Director •  Role of the Board of Directors •  How organizational capacity impacts

fundraising activity •  Effective strategies for fundraising success

A Review… Your Issues and Questions

•  Identifying donor prospects •  Making the ask •  Engaging staff, contractors, consultants •  Others?

Thank You!