NYMACC 2011 Fund Development for Your Arts Organization BoardPresentation Transcript
Presented by Andrew Marietta, Regional Manager, New York Council of Nonprofits, Inc. www.nycon.org | 800.515.5012 | firstname.lastname@example.org Fund Development for Your Arts Organization Board NYMACC | September 26, 2011
Learn the various fund & resource development duties of the Board & Development Committee responsibilities
Learn the components of a development plan & how to formulate & implement strategies
Fund Development Responsibilities of an Effective Board
Awareness & compliance with the intent of federal, state & local laws regulating charitable solicitation
Attorney General’s Office
Establish & exercise adequate controls over fundraising activities
Accuracy, integrity & accountability in all solicitation activities, materials, representations, etc.
Motivated by mission, merits & resource needs
Respect for the privacy of donors
Administrative & fundraising expenses should be fair, reasonable, documented & disclosed (reported on IRS Form 990)
Establish an appropriate governance structure
Ensure development efforts meet the budgetary needs
Ensure resources are available to maximize returns
Approval of the annual development plan
Identifying and cultivating resources
Who’s on First? The Development Committee
Prepares Development Plan for Board approval (with staff support if available)
Models and encourages full Board involvement in implementation
Monitors and reports progress
Why Have a Plan?
Challenges & replaces magical or wishful thinking
Coordinates Board, fund raising & marketing efforts with the organizational strategic plan
Gets “buy-in” from participants regarding:
Helps to pace your annual efforts
Great orientation tool for new Board Members & Committee Volunteers
Creates understanding of everyone’s fund raising roles & responsibilities
Is outcome-based & measurable which helps you learn & measure your success
Strategic Questions to ask
What are the agency’s real needs?
What are we raising money for?
Would funds raised effect existing funding streams?
Where have the resources come from in the past?
What are our funding trends?
Are the funding streams diversified?
What would be the impact of a funding cut from any source?
What are we good at?
What is a Development Plan? (or…taking the gamble out of fund development)
A detailed plan that describes how you intend to secure donated resources. It includes:
The case for support
Fund Development environmental analysis
Goals & Objectives
Human resource needs
Developing Your Case for Support
What do you need money for?
How much do you need?
Why would someone want to contribute?
Benefits to clients
Benefits to the donor
Benefits to the community
Analysis of Fund Development Environment
External Environment (Opportunities & Threats)
Community awareness & relationships
Perceptions of activities (quality & need)
Analysis of Fund Development Environment (cont’d)
Internal Environment (Strengths & Weaknesses)
Evaluation of previous efforts
Staffing capacity & support
Financial management infrastructure & technology
Budget available for development efforts
Volunteers’ commitment to fundraising
Identify Your Fundraising Strategies
Radio, television or print ads
Each Strategy Serves a Purpose
While it may not offer the greatest immediate financial return, it may:
Generate positive public exposure for organization and increase public awareness
Reach out to potential new donors
“ Set the table” for future gifts
Involve new volunteers--your best ambassadors in the community
Raise the profile of your cause or mission
Take It One Step At A Time!
Set SMART Goals!
Master Timeline Space out major events and asks Strategy Jan Feb Mar April May June Special Event x Direct Mail Campaign x Volunteers Recruited x x Follow-up Solicitation x Media Thrust x x Newsletters x
It takes money to raise money, but how much can you afford?
Remember that time is money - if it takes time, there is a cost
Even volunteer-driven fund raising efforts require adequate staffing, space & technology to support volunteers
Remember to include all costs (direct or hidden):
Space and technology needs
Marketing & advertising
Develop a Master Budget
Evaluating the Plan
Review & fine-tune the plan annually
Were costs reasonable compared to income?
Were targets & outcomes realistic?
Consider the non-financial benefits of each effort
Are you moving toward your long-term goals?
So How Did We Do?
Who Receives the Money? Source: Giving USA 2010
Source of 75% of charitable contributions
Need for unrestricted dollars
Reduced funding from government and foundations
Builds a broad-based support
Requires Board involvement and Builds LOCAL support
Why Focus on the Individual?
Development is the process of building relationships
Fundraising is setting up opportunities to actually ask for money
80% of the money you raise will come from 20% of the donors
Lower income people give a greater percentage of their income than wealthier donors
The #1 reason people don’t give is because no one asked!
Key Concepts in Fundraising
Personal face to face ask by a known peer 50%
Personal phone call by a known peer 30%
Personal letter by a known peer 15%
(on their stationery)
Phone-a-thon (by a volunteer or paid caller) 10%
Direct Mail 1-5%
Special Events Least Effective
Success Rate of Fund Raising Activities Based on Ratio of Time Invested to Financial Return
2009 Online Giving Update…
The average online gift in 2009 was $144.72. That represents a 5% decline from 2008 , but remains significantly higher than other fundraising channels.
Messages that Connect
Is it right for your audience?
Keep it Simple
Make it memorable
Emotional, tapping into positive or negative feelings
The “New” Cultivation Process… Stop being a not-for-profit. Why do we define our selves in the negative? It makes no sense. Does your organization exist to ‘not make any money?’ Or, does it exist to save lives, change lives and impact lives . Connection to Impact Drives Potential for Income. Source: www.forimpact.org
Cultivate Plants… Relate to People…
Old: The higher the ask the longer the “cultivation period.”
New: The bigger connection to impact the better the partnership
Old: Major gifts are infrequently asked for or given and require a personalized cultivation plan and solicitation.
New: Partnership opportunities are presented when good partners present themselves. Both parties bring value to the table and help each other reach their goals.
Old: Nonprofit “charities” ask for donations. Giving is the ‘right thing to do.’
New: Nonprofit businesses provide opportunities to invest in your community, and see the return for the people, region, cause you care about .
Share goals the organization pursues
Personal connections with staff, board, clients or volunteers
Personal gratitude toward the organization
Involvement in the life of the organization
Remember Why People Give
Case Study In Making It Simple: “In A Nutshell” “ The Soap Box and Toolbox for New York’s Nonprofits.” What? Why? How? Support Build Stronger Nonprofits Comprehensive Services Plan Community Engagement Collaboration Advocate Give Voice to All Education & Lobbying
What’s Your ‘Impact Statement’? Impact Statement WHAT WHY HOW
O.K. I Get It! Now How Do I Get My Board on Board?
Get buy-in and establish champions on the Board
Identify skill gaps among current members
Recruit new members with needed skills
Invest in Board training
Set an example
Establish coaching relationships
Set reasonable goals
Direct Solicitation...Not Me!
What you believe in
must be bigger
than what you are afraid of!
You are giving people an opportunity to
have an impact on a community problem
they care about--It’s simply up to you to
share your passion.
The dollars WILL follow.
What If They Say “NO”?
Anticipate objections & be prepared
Encourage prospect to tell you their reasons
Clarify misinformation & offer opportunities to become more familiar with the cause
Can you get them involved?
Choose your fundraising methods strategically
Build organizational capacity and infrastructure
People give to other people - establishing relationships are key
People give because of self-interest - know what motivates your donors
You are asking for investments and partners, not charity and prospects