CAP Annual Convention Presentation| Increasing Sustainability with Private Sector Funding | Crowdfunding: How to Harness Social Media Tools for Your Agency Fundraising

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The 2013 Community Action Partnership Annual Convention presentation "Making Your Agency Sustainable Through Fundraising & New Revenue Streams". Presented by Lannie Medina Chief Development Officer at …

The 2013 Community Action Partnership Annual Convention presentation "Making Your Agency Sustainable Through Fundraising & New Revenue Streams". Presented by Lannie Medina Chief Development Officer at Community Action Partnership of Sonoma County and Kerry Rego of Kerry Rego Consulting, Social Media consultant, at Chicago Marriott Downtown Magnificent Mile on August 28, 2013.
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  • CAAs are very diverse in their program offerings and revenue streams.Rather than try to focus on the realm of fantastic programs we have across the Nation, we are going to focus today on private sector fundraising, both traditional and online.
  • Sequester… 80% down in ten years is a big bullet
  • With a show of hands, how many have:A current strategic plan for the agencyA marketing plan for the agency which includes branding, marketing and communications messaging?A social media planInternet, technology usage policiesA fundraising plan for private donations?
  • We’ll talk in a few minutes about revealing the best kept secret in town.First, in reducing our dependence on Government funding, We can develop alternative revenue streams and sources of funding [such asPrivate Sector fundraising,Fiscal Sponsorships (charge indirect of 12%)]Evaluate all events, functions, for positive cash flowIncreasing our awareness in the community – staff and board outreachAmbassadors advocates Shifting the internal culture of the staff and the BoardShift the culture of the agencies to showcasing our highly effective programs, program managers and client success stories All staff and board are ambassadors and advocates of the Agency These ambassadors & advocates work with trained fundraising development officers to identify and/or secure asks
  • Oscar used to tell me that CAP Sonoma was the best kept secret in town.Then I went to the Cal-Neva annual conference and Tim Reese said the same thing: CAAs are the best kept secret.In doing outreach to private major gift donors & potential corporate sponsors, I was shocked at how few knew CAP Sonoma and the breadth and depth of the Agency. Donors tend to know the loudest non-profits, which aren’t necessarily the most effective or biggest; they are the loudest. CAAs have earned the right to toot their horns & be thought leaders in the communities.CAAs are like any nonprofit or business where defined goals are really only attainable with a plan. A strategic plan. The strategic plan identifies & builds diverse revenue streams, including fundraising development from the private sector Second, a marketing plan is essential. The marketing plan identifies how your CAA benefits the community and the citizens of the community. It describes how the work of the CAA improves the community overall as well as the clients of the Agency. Marketing the agency effectively increases the awareness of the agency overall. Sets the branding and positioning standardsDescribes methods of increasing awareness of the AgencyProvides consistent messaging in all marketing vehicles, online & hardcopyOnce the strategic and marketing plans are complete, the mechanics of how to secure funding from the private sector, or the fundraising plan, can be built.
  • Take your power back!Be proactive in
  • Analogy of the farmhouse …. Adding on rooms over the years and resulting inefficienciesBenefits of strategic planning…Reviewing the infrastructure and the direct services provided on a regular basis means a healthier agencyIdentifies bottom line impact & results of existing practices in program & adminComprehensive review of the agency quant & qual and reconciling how agency infrastructure is with the measureable resultsGiven the current threats to funding, it is crucialGain control of the operations and fiscal issues, if there are anyIdentifies areas for growth & opportunity & stops leakage (SWOT Analysis)Streamlines internal resources for optimal return on Agency’s initiativesMS Project or ViewPath can assist in keeping Staff & Board on trackMeasuring ResultsTracking ProgressWhere to get helpStrategic planning consultants- Software
  • From the Clients’ , Community's’ and Donors’ perspectives, what makes your Agency different from other nonprofits & agencies in the area?Know your ‘competition’ in program and for fundingCAP Sonoma – provides direct services to over 6,100 individuals & touches the lives of over 10,000 people in Sonoma County annually.In a county of 500k, businesses, companies, donors are impressed with these numbers. If I am a financial institution, how many checking accounts could that represent? Why I want to partner with CAP.CAP Sonoma provides successful early education, health programs & economic solutions for people.CAP Sonoma is Creating A Safer, Healthier P& More Prosperous Sonoma CountyCommunication-systematic, clear & consistent underpins all marketing & fundraising strategy5 to 7 touches to have someone hear the name and repeat the mission-elevator speech. 3 -5 sentences120 character tweet to allow retweets – Sir Richard Branson
  • The roadmap to getting funding identified and in the door.Maps the development strategy to the target client and funder from the marketing plan
  • In the private sector fundraising continuum, there are many fundraising vehicles for raising money.All these vehicles can produce significant dollars for the Agency over time.Critical to the success of the efforts include:The understanding that private sector fundraising takes time to build, requires less expertise than one might think, and the work outlined in the strategic and marketing plans takes place in the fundraising realm.Annual giving, events and campaigns dedicated to capital funding or a program, are in most CAAs with varied outcomes Employ the tactics of donor targeting, success stories, brief mission/vision with value desired from donor standpoint 5-7 touches (repeat)Furthering the sustainability of our Agencies comes from the more complex private sector fundraising vehicles:Giving Societies : $83.33/month or $1,000/year for five years [CAP Sonoma’s Gateway Society]Major Gift Program: Dedicating staff & Board members to cultivating donors with gifts of $10-25k or more, over timeLegacy Giving: Introducing the concept of adding CAP to individuals’ willsPlanned Giving: Charitable trusts for high net worth individuals’ estate plans [TNW of $1 mil + & Char trust of $100k +]Endowment Giving The commitment of an Agency to putting monies aside from each gift, into an endowment fund, which is invested for capital preservation. Certain percentage [3-5% mandated to be spent annually, depending on interest rate environment & other variables] What would happen if we set aside $100k in 1964? [Call Jamie Osborn for guesstimate…]
  • Now that we’ve figured out where our Agency is in the private sector fundraising continuum…And We know who’s given what for the past five years….And We are starting to understand our staffing available to build this potentially giant and sole income stream,We can organize a gift chart.A gift chart is simply a tool to organize donors & their funding levels for a program or purposeThe AskWhen the story is communicated effectively, as ask is not needed. Donors ask how they can helpSome donors enjoy being asked. Some don’t. The donor qualification process & learnings from the cultivation process plus your intuition are your guides.
  • You have grand ideas for talking about your business or message but you have to remember to listen. Social media is a conversation. If you don’t listen and talk back to people, they won’t care what you have to say. Learn to check your messages on each of the channels you use. Many of them can be set up so that you receive an email or text when someone is communicating with you. In fact, a few do this automatically and you have to turn it off. You MUST talk back or you are wasting your time. Social media is your customer’s (at least most businesses) preferred way of communication. Ignore at your own peril.
  • You have grand ideas for talking about your business or message but you have to remember to listen. Social media is a conversation. If you don’t listen and talk back to people, they won’t care what you have to say. Learn to check your messages on each of the channels you use. Many of them can be set up so that you receive an email or text when someone is communicating with you. In fact, a few do this automatically and you have to turn it off. You MUST talk back or you are wasting your time. Social media is your customer’s (at least most businesses) preferred way of communication. Ignore at your own peril.
  • Reputation Management is managing your perceived online reputation. What do people learn about you when they search for your name or business name? These are ways that you can make sure what is online about you is positive and/or true. You can’t truly delete anything that’s online but what you can do it bury it with good stuff. Most people don’t go beyond the first page so that first page is what you want to be good.Perform a vanity search. This is searching for your own name. Most call this “Googling yourself”. Google isn’t the only search engine. There’s AOL, Yahoo, Blekko and more. What do you find?If you can purchase your domain name from GoDaddy or some other host, buy it. or , They are inexpensive and are your digital real estate.Setup a monitoring tool such as Google Alerts. It’s free and once you’ve performed a vanity search, you can have Google continue to do it for you on a daily or as needed basis. It simply looks for the terms or words you setup and emails you when something new is found.Google is the dominant search engine with 65% of the market share so having your physical location and corresponding information correct with Google is extremely important. Enter into Google “google places” and it will allow you to set up a basic listing (like a phone book) for your physical business. This is important because many many services pull from Google’s database when someone searches for you. It also has a map and driving directions for the person that is searching. This information always shows up on the first page of Google.Setup a LinkedIn profile. It’s one of the most trusted sources of information on a person. It’s a resume and acts just that way. This shows up in position 3-4 on the first page of Google. This is by and large the most common tool used in professional settings. Sometimes it’s the only one used to research a person.Using all social media is in your best interest to control your message and image. Google highly ranks all social media and if you are using them regularly, you will completely control the message about you and your brand. Other than purchasing your domain name, everything here is free.The link is for more information about Reputation Management on my blog.


  • 1. Lannie Medina, Chief Development Officer, CAP Sonoma County Kerry Rego, Consultant, Kerry Rego Consulting August 2013 – 1
  • 2. The Need for Plan B  CSBG monies are decreasing  President Obama’s potential plans.  “Sequester is going to be here for a long time.” --Congressman Mike Thompson, 4th District, CA Moving to Solutions 2
  • 3. Desired Outcomes Strategic Plan Marketing Plan with Social Media Plan Fundraising Plan 3
  • 4. Increasing our independence  Developing alternative revenue streams  Looking at what we do differently: Cost/Benefit at all levels  Shifting the culture of our Agencies 4
  • 5. Revealing the best kept secret in town…  Increasing Awareness  Strategic plan  The best roadmaps are thorough & clear  Being honest, concise & focused  Marketing plan  Why do our Clients, community partners & potential donors want to associate with us  How to present ourselves to internal & external stakeholders and partners  Strategic & tactical  Fundraising plan  Identifies the best donors  Provides strategies to find donors  Quantifies goals with results 5
  • 6. Developing Diverse Revenue Streams  Government grant machine - keep it oiled and running.  Maybe things could change.  Private Sector Fundraising  Appeals & Campaigns  Private Foundation Grants  Individual & Corporate Giving  Major Gifts  Planned & Legacy Giving  Endowments (Simpler than thought)  Events with net positive cash flow  Private – Public Partnerships 6
  • 7. Doing things differently  Cost/Benefit Analysis  Communications  5-7 touches  All forms of communication possible  Targeting-targeting-targeting the audience  Events  Low & High Impact, Low & High Cost Matrix  Appeals  End of Year Giving Season – staffing appropriately  Starting early on the Annual Appeal 7
  • 8. Shifting our Culture We rely on Government funding … Our Agency is funded through private & corporate donations as well as Government grants.  Parallel path for the time-being  With current trends, fundraising from private sector could eventually be primary funding  Entrepreneurial, bottom-line thinking  Good to Great! 8
  • 9. Plan 1 of 3: Agency Strategic Plan  Adding on to the farmhouse over time  Planning  Step 1: Comprehensive review of the Agency & Honesty.  Step 2: The Reality Check: SWOT for all aspects of Agency.  Road map – Realigning to the Mission  Tracking progress  Measurable results  How  DIY  Consultants and/or Software 9 Add 3nd bedroom Laundry Room Mancave Add 2nd bedroom
  • 10. Plan 2 of 3: Agency Marketing Plan  Key Differentiators & Your Remarkable Difference  Consistent messaging & branding  The tagline encompasses your mission from client & donor perspective  Clearly identifying who we serve, our target Clients, why we rock, why the community (and donors) are better off with us in town  Communication Strategy  Communication vehicles: online, mobile, face-to-face, print, radio, TV  Value-Added, Value & Association Desired by Donors & Clients  Frequent, relevant, systematic communication & community involvement CAP Sonoma: Creating a Safer, Healthier & More Prosperous County 10 Marketing Plan
  • 11. Messaging  Is the elevator 3 or 111 floors?  Stating the mission in 120 characters  Taglines – the household words 11 Marketing Plan
  • 12. Plan 3 of 3: Agency Fundraising Development Plan  Baseline – figure where you are at.  What’s been raised from what sources, by whom, for past 3-5 years  Know your current sources of private funding  Private individuals (major gifts, individuals, corporations, private foundations)  Donor database building & management  Define what you want to raise for what purpose. 12 Private Sector Fundraising
  • 13. 13 Fundraising Continuum Annual Giving Campaigns All Purposes Events Giving Societies Major Gifts Legacy Giving Planned Giving Endowment Giving Private Sector Fundraising
  • 14. Donor identification  Prospective donors – list who & their giving potential  Donor qualification – 80% of Development time before the donor meeting happens  Effective ways to cultivate (tours, events, lunch, words: online, print or handwritten)  Be realistic about cultivation time (12-18 months is standard for major gifts or endowment asks)  The Gift Chart  Define how much can be raised from each source, for each purpose  Ambassadors, Advocates & Askers at Staff and Board Levels  Asking is easy  When it’s done at the right time 14 Private Sector Fundraising
  • 15. Now What?  Next Steps - Internal  Work with your PRD Staff on reality check & future strategy  Engage the strategic & planning Board members  Identify highly networked members and fundraisers on your Board  Empower the entire staff in the messaging & donor identification  Determine how to get the planning done (DIY or consultants)  Next Steps – External  Make & Take the Time to Be Visible in the Community  Ambassadors, Advocates, Askers 15
  • 16. Appendix  Links to Resources  Gift Chart Template  Elevator Pitch & Tweet Templates 16
  • 17. Planning & Fundraising Resources Strategic Planning & Marketing Planning Software  Palo Alto Software:  Note: need to customize but the thinking behind the planning is top notch Consultants and Organizations  The Bristol Group, Nancy Bristol.  Klein & Roth Consulting.  CompassPoint.  Online Resources & Suggested Reading    Nonprofit Sustainability, by Bell, Masaoka, Zimmerman, Wiley Publications, 2010. 17
  • 18. Gift Chart Template GIFT AMOUNT ($) # GIFTS # PROSPECTS/ FOUNDATIONS CUMULATIVE TOTAL ($) 500,000 2 4 1,000,000 100,000 2 4 1,200,000 75,000 1 2 1,275,000 50,000 1 4 1,325,000 25,000 2 4 1,400,000 10,000 3 5 1,430,000 5,000 2 4 1,440,000 2,500 5 3 1,447,500 18 Community Action Main Town USA La Dolce Vita Project Gift Chart 2013-16 Capital Campaign Amount Needed: $2.5 million Current Donor Database / Prospects Aggressive Capacity: $1,447,500 Shortfall: $1,052,500
  • 19. Templates Elevator pitch attributes: Concise, use your tagline, consistent messaging, don’t use too many words, be authentic & sound like you (not like a pitch), and always have a call to action.  [I work at…] [I am on the Board of…] Community Action Partnership Sonoma County. We are a large nonprofit Agency with 23 programs dedicated to creating a safer, healthier & more prosperous Sonoma County. Our programs are focused on early & teen education, parent education, transitional housing, asset development & economic prosperity so our Clients can become self-sustainable. We provide direct services to 6,100 people & touch the lives of over 10,000 annually. Are you familiar with us? [yes/no] Would you like a tour? [yes/no] Here’s my card. Per ROMA: add population, services, outcomes, relationship…  Community Action partners with local government and other CBOs to provide health and human services to low income people of Sonoma County to create movement out of poverty or economic sustainability NCC-1701 Warp Drive –Retweetable pitches for Sir Richard Branson types  149 character s…too long!: Community Action Partnership changes lives by helping people become self- sustainable through early education, economic independence & health programs  123 characters…just right: Community Action Partnership helps people be self-sustainable with programs in early education, economic independence & health 19
  • 20. Wouldn’t exist without crowdfunding. 125,000 donors Avg. donation $1 or less
  • 21. A collective effort of individuals who network and pool their money, usually via the internet, to support efforts initiated by other people or organizations. What is Crowdfunding? Wikipedia $$
  • 22. What to Expect ARE: • Campaign based on page • Accepts money through credit card processor • Individual component • Best for specific projects or campaigns ARE NOT: • Solution for all revenue woes • Easy, requiring no effort
  • 23. •IndieGoGo •Razoo •CauseVox •Fundly •Watsi •GoFundMe •Fundraise Crowdfunding Sites
  • 24. Where Do You Start? • Goal • Create a compelling story • Pick platform • Start with your network • Market your efforts • Communicate progress • Create meaningful rewards
  • 25. Assets •Email Lists •Social Networks •Staff/Volunteers
  • 26. • WHO is the audience? • WHAT is their preference? • WHEN do they want to hear? • WHERE are they? • WHY are you there? Market Research or 5 W’s * I like Pew Internet Research, Mashable, Comscore, and Hubspot as resources.
  • 27. DON’Ts • Set unrealistic expectations • Think if you “build it they will come” • Forget to market • Discount small donations
  • 28. Things to Consider • Sites look and feel • Ease of use • Payment processing • Fees • Marketing & social networking capabilities
  • 29. Success is determined by the 30-45 days before campaign starts
  • 30. •Blog Wordpress •Email Marketing Constant Contact Kinds of Media
  • 31. •Multimedia Instagram, Youtube, podcasts Kinds of Media
  • 32. •Networking Facebook, LinkedIn •News Twitter, Reddit Kinds of Media
  • 33. •Bookmarking Pinterest •Review Yelp Kinds of Media
  • 34. •Event Eventbrite •Location/Mobile Google Places, Foursquare Kinds of Media
  • 35. Case Study
  • 36. Questions ???
  • 37. THANK YOU! Kerry Rego Consulting 707.520.4572