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

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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

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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

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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

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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

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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

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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?

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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)

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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

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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

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Why focus on individuals?

18

19

Giving USA: 2010 Charitable Contributions $290.89 billion

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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

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How to spend fundraising dollars?

• Three strategiesW

in (acquire new donors)

Keep (retain donors)

Lift (escalate giving by committed donors)

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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

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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

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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)

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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

Jessica@threestonesconsulting.com

www.threestonesconsulting.com

315-729-3994