Sample Fund Development Plan

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2007/8 ORGANIZATION FUND DEVELOPMENT PLAN

Presented to the Board of DirectorsOctober 3

rd, 2007

by the Planning Team:BOARD MEMBERBOARD MEMBER

EXECUTIVE DIRECTORRon Milam

Process of Creating the Plan

ORGANIZATION is a membership-driven organization dedicated to engaging LOCALresidents in a leadership development process to provide them with the tools to improvethe quality of life in their community.

Beginning in June, ORGANIZATION recruited a fund development consultant tofacilitate a fundraising planning process for its Board and Staff. The process began witha development audit that identified the organizations fundraising strengths, as well asareas in which it could grow. The beginning of the process also included a LeadershipSurvey in which board members and the Interim Executive Director shared their vision ofORGANIZATION as an organization, highlighted its strengths, how discussed how theywould make the case for ORGANIZATION, including what each sees as the best

methods to go about fundraising for the organization. Information from the developmentaudit and these surveys informed this fund development planning process.

A planning group was also established consisting of the Interim Executive Director,EXECUTIVE DIRECTOR, Board members BOARD MEMBER and BOARDMEMBER, and Ron Milam, the Development Consultant. EXECUTIVE DIRECTORand Ron Milam also met weekly to discuss the development of the plan. This plan is alsoa product of the several planning sessions this group participated in.

The primary challenge facing ORGANIZATION is that of funding; specifically, in orderto continue to fulfill its mission, the organization needs to diversify and increase its

funding sources. In years past, ORGANIZATION has been successful at fundraisingfrom some of the most competitive foundations in Los Angeles. However, with over90% of the organizations funding coming from foundation sources, ORGANIZATIONis potentially at risk should these foundations withdraw their support, which could occurfor a variety of reasons (stock market downturn, change in funding priorities, strongcompetition from other non-profits, etc.). Even if there is no short-term change infundraising, over time, ORGANIZATIONS core funders will likely turn over, leaving theorganization without a strong support base.


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The best organizations reflect their values and philosophy in their fundraising. Just asORGANIZATION succeeds through a leadership-centered approach in its organizingprogram, ORGANIZATION will employ a donor-centered approach in its fundraising.Each prospective funder needs to be treated and approached as a potential leader.

Undoubtedly, after reading this plan, some Board Members will come up with new ideasand strategies not mentioned here that they might wish to take the lead on. This planidentifies several new and existing sources and outlines strategies for successfulidentification, cultivation and solicitation.

To ensure this plan is implemented, a joint effort must be made between the staff andboard of ORGANIZATION. The Action Plan presented in the appendix lists concreteactions for each of the ten strategies identified by this plan. Each action item isaccompanied by a projected timeline highlighting when the action needs to be completed,as well as a listing of who is responsible for carrying out the action. Working together

will play a key role in ensuring ORGANIZATION meets its fundraising goals.


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Executive Summary10 Strategies the Planning Team recommends

Build Upon ORGANIZATIONs Fundraising Success: Foundation Giving1. Grantwriting - Steward old donors and solicit new donors

Diversify ORGANIZATIONs Fundraising: Individual Giving2. 100% Board Giving and Getting3. Host Open House Event4. Host Fundraiser Event5. Engage ORGANIZATION membership and staff in fundraising6. Follow up with donor prospects (with a call, letter, meeting and/or tour)

Build ORGANIZATIONs Fundraising Infrastructure

7. Establish Board Development Committee8. Launch Fundraising Database9. Renew ORGANIZATIONs core written materials & website10.Continue Interim Executive Director Coaching

Appendix

a. Action Plans to document who is responsible, whats to be done, when andhow long it will take to implement these strategies

b. Cultivation Strategiesc. Fund Tracking Systemd.

Overview of the Fund Development Planning Processe. Sample Board Development Committee Write-up

f. Sample Board Giving Policyg. Detailed information on potential fundersh. Development Audit for ORGANIZATION


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Fund Development Strategies

2007/8 Fundraising Goal: $232,000

July 1, 2007 to June 30, 2008

Build Upon ORGANI ZATIONs FundraisingSuccess: Foundation Giving

1. GrantwritingSteward old donors2007/8 Goal: $100,000

For a relatively young organization, ORGANIZATION has been remarkably successfulin securing funds from some of the most selective foundations in Southern California,including the FOUNDATION 2, FOUNDATION 1 and The FOUNDATION 3.Oftentimes, an organizations best source for future funding lies in its existing donor

base. In order to ensure ongoing and increased funding (though, note that nothing is everguaranteed in fundraising), ORGANIZATION staff and board must allocate time and

energy to actively steward the organizations existing foundation funders. Rather thansimply sending an annual report and asking for ongoing support, ORGANIZATION mustemploy multiple strategies to foster funder relationships. Some possibilities include:

Forwarding positive newspaper articles covering the work of ORGANIZATIONto funders with a short note saying explaining how their funding made the workdetailed in the article possible, and thanking them for their support.

Occasionally calling funders to report a major victory, asking them for feedbackregarding a current challenge or seeing if they can connect you to other resources(such as other funders) that would help ORGANIZATION.

Inviting funders to ORGANIZATION events and seeking them out at events yousee them at.

Planning for a face-to-face meeting (if possible) to report on the work of theorganization at the end of the grant cycle, before the final report is due. Alsousing this time to discuss the possibility of ongoing support.

Tracking each interaction with existing funders in a database, which will create afunder stewardship history that can be referenced in the future.

Soli cit new donors - 2007/8 Goal: $100,000

Several foundation prospects were identified during the Fund Development Planningprocess, including: The James Irvine Foundation, the Marguerite Casey Foundation, theDiane Middleton Foundation, Hispanics in Philanthropy and the Roth Family Foundation.

ORGANIZATION has been extremely successful at grantwriting, winning grants fromthe most competitive funders in Los Angeles, as noted above. But a lack of dedicateddevelopment staffing left very little time to reach out to more foundations, andORGANIZATIONhas historically only been able to approach a handful of foundationseach year. These foundation relationships are extremely time-consuming, and requiredetailed reports and renewal proposals.


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prospect and introduce them to other ORGANIZATION board members, staff andmembers.

4. Host Fundraiser Event - 2007/8 Goal: $10,000To date, ORGANIZATION has never hosted a fundraising event. Hosting a fundraising

event helps raise the visibility of your organization while also securing needed funds.The ORGANIZATION Board Development Committee and interested members shouldexplore the different types of events and decide upon an event that fits within theorganizations culture and capacity. Once decided, a special event committee should beformed to create a plan to ensure the event is a success. The following invites for afundraising event should be considered:

All ORGANIZATION Board Members Current foundation funders to ORGANIZATION Prospective foundation funders Prospective Major Individual donors or Corporate supporters who might have a

special interest in ORGANIZATION and/or the issues that affect the community

Local elected officials ORGANIZATION Leadership Committee members Accion Colectiva MembersAn event will help raise ORGANIZATIONs profile in the donor community, help bondcurrent supporters to ORGANIZATION, and help attract potential supporters who mightnot otherwise visit and learn about ORGANIZATION.

5. Engage ORGANIZATION membership in fundraising - 2007/8 Goal: $7,000Involving members in the fundraising process may help with ORGANIZATIONs effortsto raise funds, while simultaneously building the leadership capacity of

ORGANIZATION members. Members can help plan events, participate in tours withpotential donors, and even make a contribution to ORGANIZATION. Membersfinancial contributions will not only help ORGANIZATION diversify its funds, but alsoincrease commitment to the organization by fostering personal investment.

6. Solicit donor prospects (with a call, letter, meeting and/or tour) - 2007/8 Goal:

$7,000

Larger nonprofit institutions are constantly researching, approaching and cultivating newmajor individual donors suggested by their Board Members and Committee Members.

As names are suggested for ORGANIZATION, those prospects who have the capacity to

make a major gift might be invited to the community for an individual site visit as part oftheir cultivation.

ORGANIZATION could begin a monthly major donor program, in which every monthone prospective new major donor is identified, researched, and invited to visit thecommunity. A starting point for invitees could be any individual who has the potential ofgiving $1,000 or more to ORGANIZATION. Your Board and Fund DevelopmentCommittee could identify and reach out to other prospects.


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You might pick a particular recurring day (such as first Wednesday of the month) so

that staff and members recognize it as a visitors day and the Interim Executive Directorcan place it on their schedule as a recurring event.

Build ORGANIZATIONs Fundraising Infrastructure7. Establish Board Development CommitteeA Fund Development Committee oversees an organizations fundraising operations, and

takes the lead in personally reaching out to contacts and identifying potentialcorporations, foundations, individuals and government funding sources. Part ofdeveloping the ORGANIZATION Fund Development Plan included the development ofa Board Development Committee, which included participation from:

BOARD MEMBER BOARD MEMBER EXECUTIVE DIRECTOR Ron Milam

This committee should continue to meet on a regular basis in between regular boardmeetings to ensure this fund development plan is implemented. Attachment E contains asample Board Development Committee write-up.

8. Launch Fundraising Database

As ORGANIZATIONs fundraising operations become more sophisticated, theorganization will need to keep an electronic database that captures donor contact info,donations and the organizations correspondence with funders. Create a system thatworks for you to ensure easy access to this information. Multiple fundraising databasesexist; these should be explored and one that fits the needs of ORGANIZATION shouldbe selected.

9.Renew ORGANIZATIONs core written materials & website that will anchor ourfundraisingORGANIZATION has grown since its founding and has taken on new initiatives likeworking to influence the New Community Plan for the community. As the organizationworks on new projects, its fundraising materials need to be updated accordingly. DuringJuly and August, even as this plan was being developed, a major focus has been onrenewing ORGANIZATIONs written materials, including:

General Operating Grant Proposal A general letter of inquiry Web Page Content A general brochure A newsletter10. Continue Coaching for ORGANIZATIONs Interim Executive Director

Ongoing executive coaching, with a specific emphasis on fundraising, will enableORGANIZATIONs Interim Executive Directorto implement this fund developmentplan. This plan represents an important step for the organization as it takes itsfundraising to the next level. Many more decisions and a great deal of hard work lie


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ahead as the organization implements this plan. Having the assistance of an experiencedfundraising professional whose goal it is to develop the organizations fundraisingcapacity will play a key role in ensuring ORGANIZATION is successful in its efforts todiversify and increase its funding base.


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APPENDIX

The first four attachments can be found in a separate Excel Spreadsheet document namedAttachments-Fund Development Plan

Attachment AAction PlansThis Action Plan documents who is responsible, whats to be done, when and how long it

will take to implement the strategies identified in this fund development plan. It can beviewed in the attached spreadsheet, under the worksheet named Attach A - Action Plan

Attachment B - Cultivation Strategies

This spreadsheet list more information about prospect funders, when they should beapproached and what connections ORGANIZATION has with some of the funders. Itcan be viewed in the attached spreadsheet, under the worksheet named Attach B -Cultivation

Attachment C - Fund Tracking System

These spreadsheets will allow ORGANIZATION to keep track of donations as they comein. It can be viewed in the attached spreadsheet, under the worksheet named Attach C -Development P&L, Attach C - ContributionsFdns & Attach C - Contributions - Inds

Attachment D - Overview of the Fund Development Planning Process

This spreadsheet gives an overview of the meetings it took to develop this funddevelopment plan. It can be viewed in the attached spreadsheet, under the worksheetnamed Attach D - Fund Plan Calendar


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Attachment E - Sample Board Development Committee Write-up

Board Development CommitteeThe Board Development Committees job is not simply to raise money. Instead, theCommittee is responsible for overseeing the organizations overall fundraising and, in

particular, the fundraising done by the board. To accomplish this, its responsibilities are: To work with staff to implement ORGANIZATIONs recently adopted

fundraisingplan.

To work with fundraising staff in their efforts to raise money To take the lead in certain types of outreach efforts, such as chairing the planned

fundraising event for the fall of 2008, or to host a house party.

To be responsible for involvement of all board members in fundraising, such ashaving board members make telephone calls to ask for support, and

To monitor fundraising efforts to be sure that ethical practices are in place, thatdonors are acknowledged appropriately and that fundraising efforts are cost-effective.

Composition:BOARD MEMBERBOARD MEMBEREXECUTIVE DIRECTOROne or two other board members (could include a new board member)

Chair:To be determined

Meetings:

Board Development Committee should meet between every full board meeting.

Reporting:At each board meeting, the Board Development Committee chair should report onthe Committees activities.


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Attachment F - Sample Board Giving Policy

Board Member Giving & Fundraising at ORGANIZATION

In the summer of 2007, Board and Staff Leadership of ORGANIZATION worked withan outside consultant to create a Fund Development Plan. In the Leadership Surveyscollected from the board as well as during Development Committee meetings, differentideas were discussed to engage board members with fundraising, including:

giving to ORGANIZATION approaching personal & professional contacts host a party help with an event (invite friends) meet with fundersBased on these discussion, the Development Committee recommends as part ofORGANIZATIONs new Fund Development Plan that 100% of ORGANIZATION Boardmembers support the organization with their own personal financial contribution, andhelp with fundraising.

The Board Development Committee discussed and decided upon aiming for each boardmember to raise $1,000 for ORGANIZATION during the 2007/8 year.

The Development Committee hopes that ORGANIZATION board members will come toour organization as the best way to invest your charitable dollars, in the same way youhave chosen to invest your time and talents with us.

Many foundations request data on the percentage of Board Members who give each year,and the total amount given by the Board. These foundations are influenced by the levelof financial commitment they see in board members, who know the organization best.This policy will help ORGANIZATION by communicating to foundation funders that wehave a committed, involved Board that believes in the organization, and that givesfinancially as well as through its time and talent. Please know that we value every boardmembers contribution, non-financial as well as financial.

We also want to be flexible and offer different ways for board members to get involved infundraising. Everyone can fundraise. If you have written a letter, you can fundraise. If

you have made a phone call, you can fundraise. If you have taken someone to lunch or tovisit the school, you can fundraise. You might host a party, attend a party, or come to theneighborhood to co-host a site visit and meet funders. There are many ways to help withfundraising, and Evelin will be happy to work with you to find ways that you wish toparticipate.

Achieving 100% board participation in contributing and fundraising will help us acquirethe resources to fulfill our mission.


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Attachment G - Detailed information on potential funders

Funding Prospects for ORGANIZATION

Detailed Informationfrom FC Search

ORGANIZATION

Executive Summary

Foundation Funding ProspectsBank of AmericaFOUNDATION 3FOUNDATION 1.


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Funding ProspectsInfo from FC Search

The Bank of America Charitable Foundation, Inc.

101 S. Tryon St., NC1-002-33-77Charlotte, NC 28255-0001URL:

http://www.bankofamerica.com/foundation/index.cfm?template=fd_funding

Donor(s): Bank of America Corp.; Bank of America,N.A.; FleetBoston Financial Foundation.Type of grantmaker: Company-sponsored foundation.Background: Established in 1958; current name adoptedin 1998 following the merger of NationsBank Corporation andBankAmerica Corporation; reincorporated in 2004.Purpose and activities: The foundation supportsorganizations involved with arts and culture, education,health, human services, community development, andreligion. Special emphasis is directed toward programsdesigned to address critical issues in local communities.Program area(s): The grantmaker has identified the

following area(s) of interest:Joe Martin Scholarships: The foundation awards collegeand vocational school scholarships to children of Bank ofAmerica employees. The program is administered byScholarship America, Inc.Local Heroes: The foundation awards $5,000 grants tononprofit organizations selected by outstanding communityleaders.Matching Gifts: The foundation matches contributionsmade by associates of Bank of America to nonprofitorganizations from $25 to $5,000 per associate, per year.Neighborhood Builders: The foundation awards $200,000grants to programs designed to create vibrant

neighborhoods.Volunteer Grants Program: The foundation awards $500grants to nonprofit organizations with which Bank ofAmerica associates volunteer.Fields of interest: Arts; Community development;Education; Health care; Human services; Religion.Geographic focus: NationalTypes of support: Annual campaigns;Building/renovation; Continuing support; Emergency funds;Employee matching gifts; Employee volunteer services;Employee-related scholarships; Equipment; General/operatingsupport; Internship funds; Matching/challenge support;Program development; Scholarship funds.Limitations: Giving limited to areas of major company

operations. No support for political, labor, or fraternalorganizations, civic clubs, religious organizations not ofdirect benefit to the entire community, public or privatepre-K-12 schools, United Way- or arts council-supportedorganizations, or disease advocacy organizations. No grantsto individuals (except for Joe Martin Scholarships), or forfellowships, advertising, sports, athletic events, orathletic programs, travel-related events, student trips, ortours, development or production of books, films, videos,


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