Presentation to participants of the Arts & Business Council\'s OnBoard program.

1. Fundraising for Board Members May 14, 2011

2. Martin Grochala Director of Institutional Advancement Chicago Academy for the Arts Mark D. Warner President MDW Consulting, Inc. Facilitators

3. What you would like to learn? What do you feel will be your biggest fundraising challenge? Are you comfortable talking about money? Introductions

4. Identify Qualify Cultivate Message Solicit Steward What will we cover.

5. Americans gave $307.75 billion in 2009. Total giving, when adjusted for inflation, was down 5.7%, the largest drop since tracking began. Giving still totaled $307 billion! Individual giving is 75% of total giving not including bequests Corporate giving increased 5.5% in 2009 to $14.1 billion. accounting for 4 percent of all charitable giving Foundations represent only 13% of giving or $38 billion - down 8.9% Identify: Sources of Philanthropy

6. 2009 Contributions by Source Source: Giving USA 2010

7. Giving by Recipient Organization Source: Giving USA 2010

8. As a Board member, you should have specific and measurable expectations. Donor at $1,000 or more (for example) Subscriber Purchase Table at Gala Raise $5,000 or more (for example) Annual fundraising plan with each board member Assigned 3-4 major gift prospects at one time (no more!) Discuss philanthropy at each Board meeting - don’t be afraid to talk about money. Your Role

9. Holds Board members and managing director accountable for meeting fundraising goal Exhibits good behavior by being a donor and fundraiser Discuss philanthropy at each Board meeting in a constructive manner Be a fundraising leader Role of the Board Chair

10. Stages of Building a Philanthropic Board Ambassador “I will ask others to give.” “I will ask others to becomeinvolved.” Advocate “Iwillbeanambassador… I will advocate the organization to others.” Donor “I will give again (annually).” “I will give.” “Giving is important.” Volunteer

11. Building Culture of Philanthropy What exactly is philanthropy? How does a culture of philanthropy relate to stewardship? Discuss philanthropy at each Board meeting and it’s role in supporting the mission Recognize and celebrate your donors and their philanthropy

12. Reasons people give Sense of belonging and affiliation Recognition in society Theyare asked Aligning the organization’s mission with the donor. Doesn’t mean changing the mission Identifying programs, themes and people of interest to the prospect (e.g. new play development, school programs) Beginning a dialogue with that prospect Donor-Centered Fundraising

13. Cultivate: Prospect Migration Gift C A P A C I T y Relationship Initial Relationship Education Solicitation

14. Giving Pyramid Planned Giving Personal Solicitation Capital Campaigns Proposals Annual Fund Events & Mail

15. Screen to identify your best prospects Subscribers and frequent ticket purchasers Event Attendees Donor List Review Current Donors Rate and assign to staff person and/or volunteer Develop a series of “next steps” for your new prospects Inviting prospects to performances and society events Assigning to volunteers Identify: Top prospects

16. What is a Sponsorship? A way to market a contribution opportunity Built around the organization’s programming Plays Choreography An Exhibit Benefits and Visibility – what the sponsor expects in return Advertising Tickets Invitations Gifts Stewardship Identify: Corporate Sponsorship

17. Sort your identified prospects in a range of most likely to least likely by asking these questions: Is there a connection with your organization? Is there a connection with your organization’s arts discipline? Is there a connection with the arts in general? Is there a civic connection? Is there a personal relationship connection? Is there a business connection? Does this person/company/foundation have the means to make a gift? Qualify

18. Thank you to all donors sometime before the performance or event Welcome society members Ask attendees to join fellow society members in the audience. Note upcoming society events Review attendee lists beforehand and introduce yourself at performance Specifically mention how philanthropy supports a program. Celebrate philanthropy! Cultivate: Your Performances/Venues

19. Develop a compelling reason your friends and colleagues should give to YOUR arts organization and its mission How is it unique (e.g. community served, artistic direction, new playwrights)? What will happen or change if someone donates? Take the mission and craft it into your own words. Messages: make your organization unique!

20. Role Play Instructions You’ve been partnered with an alumnus of the OnBoard program Each alumnus will meet with 2-3 OnBoard participants He or she will help you craft a compelling elevator speech based on the mission and your own interests and passions

21. Consider next logical ask amount and approach. Most important thing is that donor was asked even if they say no. “Under what circumstances would you consider a gift of $X?” Solicitation Follow-up Solicit: Don’t be afraid to ask

22. Schedule the meeting, letting the donor know that you would like to ask them to support your organization Staff prepares a briefing with background information and an outline of the ask, including: Ask amount History of the donor’s relationship with organization Giving history Personal or professional information Roles Who will make the ask? Don’t be afraid to ask.

23. Introduction and update Make the Case Outline the overall fundraising Goal “Would you make a gift of $XX,XXX to _______” Silence (Absolute!) The Pitch

24. Let the donor respond Make ask and then sit quietly with your hands in your lap. Give donor the time to consider request and answer Withhold impulse to fill the pause – regardless of how long The donor willrespond Once they have responded, it will be your turn to say “Thank you” After the Ask…

25. “Yes, I/we can make a gift.” Your reply: “Thank you. That is very generous of you. When/how would you like to make your gift?” Collect all the key information you need: If they immediately write a check, ask how they want to be acknowledged Ask if they would like to receive e-mails Leave behind a listing of donor benefits Let them know that they will be invited to attend upcoming events (especially those about the project they are funding) Thank them for their generosity and for their time. Yes!

26. The donor response is not now or “No” Your reply is: “Thank you for considering our request” Is there an amount that would be more appropriate? Would you be able to make pledge payable over multiple years? Can I call on you again at a later time? No.

27. Please read the scenario and donor briefing documents Break into groups of four One pair will be the solicitation team and one pair will be the prospect couple Switch off roles Role Play Instructions

28. Solicitation Role Play

29. What did you learn from the role play? What would you have done differently? Role Play Follow-up

30. Immediately send a personal thank you note in a medium suitable for that donor (regardless of outcome) Document next steps along and gift information Note any important information for donor’s record Family, career or education information Likes, dislikes, associations with other organizations, etc. Develop a stewardship plan Congratulate yourself for job well done! Assess and adapt anything you could improve Stewardship and Follow-up

31. Ask organizations what you can expect from Staff: Help with identifying and cultivating your prospects? Accurate recording and keeping of your lists? An annual meeting to assess your current prospects, to add new ones and to create strategies for the coming year? Assistance with and reminders of invitations to events? Assistance with and reminders of timely gift requests? Timeframe for acknowledging gifts? Stewardship: Support from Staff

32. Set a realistic goal. Identify Prospects. Create or Identify Cultivation Opportunities Create messages that resonate. Solicit prospects. Steward Donors. Setting Goals for your Fundraising Plan

33. Break-up into groups of 4-5 Use the organization in the previous role play as a model for ideas Who would you like to solicit (e.g. friends, colleagues, families, business partners)? What type of cultivation will they need? How would you like to solicit them? Discuss potential fundraising strategies. Create Your Fundraising Plan

34. Working Lunch

35. Present your plan to the group: Describe your plan in overview What is your top priority? How will you utilize the organization’s assets? How much do you think you can raise? Fundraising Plans Continued…

36. Your Fundraising Plan

37. Questions?

38. Thank you! Marty & Mark