Young Nonprofit Professionals Network Learning Circle
The Essentials of Fundraising & Donor Development
Week 1 - Developing a Fundraising Plan
Jessica Haynie
September 27, 2011
22
Today’s Agenda
• Introductions
• Overview of Class
• Exercise
• Presentation
• Review Homework
• Q & A
33
Overview of Class
• Combination of exercises, presentations, discussions, and homework
• Week 1 - Developing a fundraising plan• Week 2 - Evaluating fundraising program• Week 3 - Prospect research (Identification &
Qualification)• Week 4 - Cultivation & Solicitation• Week 5 - Stewardship• Week 6 - open topic
44
Learning Circle Objectives
• Learn how to develop a fundraising plan• Learn how to evaluate current fundraising program• Become more comfortable and clear in giving the
elevator pitch• Understand the key phases in donor development• Start identifying and organizing top prospects and
suspects• Develop a telephone script and test it out
55
Exercise• The elevator pitch
• Don’t just repeat your mission statement
• Tell us what you do and who you do it for
• Share a quantitative result
• Provide some perspective
• Spell out the opportunity
66
Exercise• The elevator pitch
• Find a partner
• You have 2 minutes to make your pitch and 3 minutes to answer any questions your partner may have
• Switch and repeat
• Take notes on went went well, what didn’t go well, things you wish you knew, did you run out of time
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Why is it important to have a fundraising plan?
• To help you recognize what you have to work with
• To define what you need• To select your target market(s)• To choose your fundraising strategies• To organize the steps required to put the
fundraising plan in place• To demonstrate to the outside world that you
are organized and businesslike
88
What are the essential components of a fundraising plan?
• Mission/case statement• Fundraising goals• Gift range chart• Strategies with action steps• Stewardship plan• Calendar• Budget
99
A case statement is…
• A clear statement of the need your organization addresses, how you address it, what makes you unique and how others can help
• A document you can use in drafting all your other publications and presentations
• An item that requires your board and staff to communicate with each other about the central vision of the organization
1010
A case statement is not…
• Everything there is to know about a specific program
• Something the board uses to show off its talents
• A long-winded grant proposal• A work of fiction
1111
Components of a case statement
• The mission - Why do you exist?• History/accomplishments - Where have you been?• Population served - Who do you serve?• The problem - What is the problem being addressed?• Your strategy - How do you address this problem?• The goals - What do you want to accomplish?• Development - What will you do in the future?• Staff and governance - Who runs and oversees your
organization? What qualifies them?• Finances - Is your organization fiscally responsible?• The ask - What do you need funding for? How will the donor’s
investment be used?
1212
Good case statements generate:
• Excitement (positive emotional response)• Sense of proximity (nearness to cause)• Sense of immediacy (right timing, importance,
urgency)• Sense of hope (optimism, future orientation)• Meaning (perception of match to values, desirable
benefits)• Sense of reasonableness (feasible, benefits outweigh
costs)
1313
Identify your goals
• What does your organization need to fund? Programs, everyday operations, capital enhancements, building an endowment
• How much funding do you need?• Who will it come from? Individuals, foundations,
corporations?• Are you looking to grow your program or just maintain
it?
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Sample gift range chart for $100,000 annual fund goal
Gift Range # Gifts # Prospects $ Raised
$5,000 2 10 (5:1) $10,000
$2,500 4 20 (5:1) $10,000
$1,250 12 48 (4:1) $15,000
$1,000 15 60 (4:1) $15,000
$500 20 60 (3:1) $10,000
10% of Donors 60% of Goal
$189
20% of
106
Donors
318 (3:1)
20% of
$20,000
Goal
$53
70% of
Total
371
Donors
530 donors
742 (2:1)
20% of
1,258 prospects
$20,000
Goal
$100,000
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The gift range chart
Gift Range # Gifts # Prospects $ Raised
5% of goal 2 10 (5:1) 10% of goal
1/2 above 4 20 (5:1) 10% of goal
1/2 above 12 48 (4:1) _________
________ 12+ __ (4:1) _________
________ ___ __ (4:1) _________
10% of Donors 60% of Goal
________
20% of
___
Donors
__ (3:1)
20% of
20% of goal
Goal
________
70% of
___
Donors
__ (2:1)
20% of
20% of goal
Goal
1616
Develop your strategies & action steps
Strategy Sub-strategy
Goals Objectives Action Steps By when By who
Membership Win, Keep, Lift
Specific $ goal
Sub-goals Specific activities to raise $
Ongoing or by specific date?
DD, ED, Board, Vol?
Major Donors
Board Members
Special Events
Corporations
Foundations
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Develop your strategies & action steps
Strategy Sub-strategy
Goals Objectives Action Steps
By when By who
Membership
Major Donors
Board Members
Special Events
Corporations
Foundations
18
Why focus on individuals?
18
19
Giving USA: 2010 Charitable Contributions $290.89 billion
19
5%
14%
8%
73%
Corporations
Foundations
Bequests
Individuals
2020
The individual prospect
• Accounts for the largest portion of all charitable giving
• Is more likely to seek involvement with your cause and organization
• Long-term relationships are most likely to occur
2121
How to spend fundraising dollars?
• Three strategiesW
in (acquire new donors)
Keep (retain donors)
Lift (escalate giving by committed donors)
22
Developing a stewardship plan
$1-$99 $100-$249 $250-$499 $500-$999 $1,000+
Thank you letter X X X X X
Newsletter X X X X X
Emails X X X X X
Invitations to events X X X X X
Annual Report X X X X
Phone call thank you X X X
Personal thank you note X X
Holiday cards X X
Annual visit by ED X
23
Developing a calendar
• Refer to the handout, but keep these tips in mind– Be realistic– Instead of trying to do it all, do a few things
really well– Keep non-fundraising activities in mind
when creating the calendar
24
Key components of a fundraising budget
• Supplies (letterhead, envelopes, note cards, etc)• Postage• Design and printing of publications• Travel• Meals with donors• Event costs• Trainings and Conferences• Salaries and wages• Consultants or outsourced services• Memberships/professional associations/publications• Database• Web-based fundraising and fees (ie credit card processing)
25
Homework
• Draft a case statement for your organization• Print 2 copies and bring to class next week• Be prepared to have it peer reviewed
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Any questions?
Three Stones Consulting, LLC
Santa Fe, NM
www.threestonesconsulting.com
315-729-3994
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