Webinar: Practical Fundraising Strategies in Economic Development

Practical Fundraising Strategies & Current Trends

forEconomic Development

Webinar presented Nov. 17th, 2015.

http://www.hotspringschamber.com/

Agenda

1. Brief History of ED Fundraising2. Practical Fundraising Strategies

– Return on Investment– How to use ROI to raise the money

3. ED Fundraising Trends– Biz Retention / Expansion– Workforce Development– Closing Funds & 501c3’s

4. Q&A

History of Econ Dev Fundraising

• Over 10,000 EDOs across the country• Most are only publicly funded• In some cases, funding is adequate• In many cases, there’s not enough money

• In mid-80s, progressive communities started raising private $ to become more competitive• Started as Committees of 100 or 1,000• Eventually funded multi-year initiatives (3 to 5 years)• Most initiatives housed in local Chambers, but soon

spun off into their own 501c6 or c3 orgs

Location Pop. 5-Yr Goal RaisedIthaca, NY * * 102,000 $1,400,000 $1,709,450Burlington, NC * 115,000 $1,600,000 $1,700,000Elmira, NY * 90,000 $1,400,000 $1,683,900Henderson, KY 90,000 $2,600,000 $2,815,000Gainesville, FL * * 253,000 $6,000,000 $6,038,232Roanoke, VA * 93,000 $2,600,000 $2,738,000Burlington, IA * 35,000 $1,800,000 $2,010,200 Vermillion, SD 10,000 $1,500,000 $1,640,000 Wayne County, OH 15,000 $2,300,000 $2,417,480 Chattanooga, TN 349,000 $8,800,000 $10,000,000Greenwood, SC * * 70,000 $4,500,000 $3,880,000

History of Econ Dev Fundraising

Donations

Gifts

Contributions

It’s aboutReturn on Investment,

&“What’s in it for

Me?”

Practical Strategies - ROI

Expected Annual Results• $1,769,766 in new car & truck sales• $2,341,629 in grocery store revenue• $1,205,126 in electricity revenues• $421,373 in natural gas revenues• $3,669,555 in restaurant sales• $3,557,590 in medical revenue• $3,363,759 in apartment rents• $6,245,272 in new financial deposits

Marketing Budgets > Philanthropic Budgets


Practical Strategies – Test the Plan

1. Identify your community’s challenges and/or opportunities.

2. Draft your multi-year proposed solution• Include multi-year costs & goals

3. Test your proposed solution• Board of Directors & Major Biz Leaders

4. Refine your plan based on feedback (if they help write it, they’ll help underwrite it)

5. Raise the money

Practical Strategies – Raise the Money

1. Approach largest investors/beneficiaries first• If $1 million goal…• $100k --> 75k --> $50k --> $25k --> $10k

2. Remember the metrics• Lead commitment => 10% of goal• Top 10 +> 50% of goal

3. Broaden the base / grassroots

What can you fund?• Operations• Marketing• Site Selector Tours• Facilities

Hottest trends right now• Business Retention & Expansion• Workforce• Closing funds and 501c3’s

Econ Dev Fundraising Trends

Existing Industry HQ Visits• Coordinate with local GM/Plant Manager• Meet w/ top brass at HQ

1. Thank you for doing business in our community

2. What can we do to help you?3. What new product lines are in your pipeline?4. And how do we win that expansion here

versus your plants elsewhere?


Supplier Recruitment• Compile community-wide list of suppliers

• Get contact information from local industry• Utilize 3rd party database (Datamyne)

• Identify commonalities (suppliers or materials)• Develop contact strategy (in-house or 3rd party)• Utilize local industry to open doors / close deals


Workforce Development/Retention• Most job openings since 2000 (5.8M in July)

• $35k/each = $203 billion in potential payroll• EDOs are facilitating discussions – industry, high

schools & higher education• Industry tours – students, teachers, parents, and

guidance counselors• Awareness – income/career opportunities of

two-year education• Promise Initiatives


Opportunity & Deal Closing Funds• Mostly in smaller communities• $100k to $250k => grants of $25k to $50k

501 (c) (3) Foundations• Necessary for corporate/philanthropic

foundations and families/individuals• Six-month approval timeline• ~$10k cost


Q&ARick Kiernan

Convergent Nonprofit Solutions919-270-2137

[email protected]

Webinar: Practical Fundraising Strategies in Economic Development

Government & Nonprofit

Transcript of Webinar: Practical Fundraising Strategies in Economic Development