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Development Class 3

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    • 1. Development An Introduction Shane D. Hudson
    • 2. OVERVIEW
    • 3. What’s It Called? • Development • Fundraising • Advancement • It’s all raising $
    • 4. Question? • Have you ever been approached by an arts organization to make a donation? • What tactics were used?
    • 5. Development for the Arts • More important than ever • Many organizations adding positions – Usually only one person – Potentially higher salary – Potentially unrealistic expectations – CDO’s becoming popular • 40% - 60% of operating budget • Unearned income
    • 6. Marketing and Development
    • 7. Marketing and PR • Pay attention to your message and your reputation/brand • Communicate your goals internally as well as externally • Tell your story • Focus on the why not the what • Enlist the media in your efforts
    • 8. Where Does The $ Come From?
    • 9. INDIVIDUALS • Individual – Gifts – Bequests – Events
    • 10. CORPORATIONS • Corporate – Grants/Gifts – Sponsorships
    • 11. FOUNDATIONS • Foundations – Family – Community – Private – Public
    • 12. GOVERNMENT • Government – Local – State – National
    • 13. Ongoing Support • The Annual Fund – Annual (or more frequent) appeals to a core group of constituents. – Such funds are usually unrestricted (available for any use) – May represent a large percentage of your annual income.
    • 14. Realign The Annual Fund • Old – Silos – Annual Giving at the low end – Major Gifts – Capital Campaigns – Planned Giving (Bequests) • New – Hub – Gifts build on one another – Annual Gift is the Hub • Help Engage Donor
    • 15. Ongoing Support • Multi-Year Grant – A grant-giving organization such as a foundation may provide restricted funding for a particular project or program – Or, unrestricted funding to help cover the overhead costs of running the organization
    • 16. Ongoing Support • Endowment Income – Many large nonprofits, particularly higher education institutions and healthcare organizations build up large endowment funds – These fund produce interest that is used to support the organization.
    • 17. Episodic Funding • Foundation or Corporate grants • Special events • Bequest • Government Support – These funds may be restricted to one purpose or devoted to unrestricted use by the nonprofit.
    • 18. The Capital Campaign • A capital campaign is a multi-year fundraising campaign with a particular goal such as: – Funding a new building – Raising funds for a particular project, such as cancer research – Increasing a particular asset such as an endowment
    • 19. Planned Giving • Most nonprofits now have planned giving programs which enable a donor to confer a gift at the time of his/her death • Or to give a large gift immediately while receiving income during the donor's life.
    • 20. TRENDS
    • 21. How Is It Given? • $303.75 Billion in 2009 – 75% Living Individuals – 8% Bequests – 13% Foundations – 4% Corporations – 88% From All Individuals (living, bequests, family foundations)
    • 22. Trends – Nonprofits • Long Tradition in US • Indispensable role addressing social issues • 1.5 Million in US • 5% of Gross Domestic Product • Giving Exceeds $300 Billion Annually
    • 23. Trends – In NC • 10,000 Nonprofits • 400,000 Jobs (10% of workforce) • $13 Billion in Wages • Most Are Small (Only 20% w/budgets of $100,000+)
    • 24. Where Is It Going? • 33% to Religion • 13% to Education • 10% to Foundations • 9% to Human Services • 7% to Health • 8% to Public-Society Benefit • 4% to Arts and Culture • 3% to International Aid • 2% to Environment/Animals • 1% to Individuals
    • 25. The Association of Fundraising Professionals (AFP) reported a 10 to 20 percent drop in charitable donations. Some studies put the figure higher at 30 percent since the start of the economic recession.
    • 26. Impact of the Recession • Overworked, Underpaid, Underappreciated • Lack of Resources • Often Lack Training • Expected to do More with Less • Greater Pressure to Raise More $ • Rising Demand to: – Be more effective, efficient, transparent, accountable – Show and measure results/impact
    • 27. Priorities for Arts • Multi-Year Giving • General Overhead • Endowment Funding • Small Grants • Challenge Grants
    • 28. DONOR RIGHTS
    • 29. Donor Bill of Rights "Philanthropy is based on voluntary action for the common good. It is a tradition of giving and sharing that is primary to the quality of life. To assure that philanthropy merits the respect and trust of the general public, and that donors and prospective donors can have full confidence in the not-for-profit organizations and causes that they are asked to support, we declare that all donors have these rights:
    • 30. Donor Bill of Rights • I. To be informed of the organization's mission, of the way the organization intends to use donated resources, and of its capacity to use donations effectively for their intended purposes.
    • 31. Donor Bill of Rights • II. To be informed of the identity of those serving on the organization's governing board, and to expect the board to exercise prudent judgment in its stewardship responsibilities.
    • 32. Donor Bill of Rights • III. To have access to the organization's most recent financial statements.
    • 33. Donor Bill of Rights • IV. To be assured their gifts will be used for the purposes for which they were given.
    • 34. Donor Bill of Rights • V. To receive appropriate acknowledgment and recognition.
    • 35. Donor Bill of Rights • VI. To be assured that information about their donation is handled with respect and with confidentiality to the extent provided by law.
    • 36. Donor Bill of Rights • VII. To expect that all relationships with individuals representing organizations of interest to the donor will be professional in nature.
    • 37. Donor Bill of Rights • VIII. To be informed whether those seeking donations are volunteers, employees of the organization or hired solicitors.
    • 38. Donor Bill of Rights • IX. To have the opportunity for their names to be deleted from mailing lists that an organization may intend to share.
    • 39. Donor Bill of Rights • X. To feel free to ask questions when making a donation and to receive prompt, truthful and forthright answers.
    • 40. MAKE YOUR CASE FOR SUPPORT
    • 41. Case Statement 1. Identify the important problems or needs that the organization intends to address with the help of the contributions 2. Demonstrate the organization’s ability to address these needs. 3. Match the proposed areas of organizational activity with the funder’s own philanthropic interests.
    • 42. Case Statements • Describe the organization’s mission in terms of human and social issues – – Organization’s objectives – Strategies – Staff, budget and other needs to carry out your plan – Who will ultimately benefit – Case for support – Why should someone support you – Stresses strengthen – emphasize the positive
    • 43. Case Statements • What is distinctive about your organization? • What is your primary reason for being? • What are your core values? • What are your key words? What is your passion?
    • 44. Writing for Fundraising • In describing your work, be clear, not clever. – We produce the Edible Arts Festival of Food and Art each June – Eat Your Art Out
    • 45. Making Things Happen • ______ was created because… • ______ exists now because… • ______ will flourish in the future because…
    • 46. Think Like The Funder • On Grant Applications, answer the questions asked… All parts! – Describe your board of directors and their key responsibilities. Describe your rotation policy and how new members are recruited and trained.
    • 47. Don’t Be Glib • Don’t make meaningless Statements or assumptions – “As everyone knows, there are many types of art.” – Like all non-profits organizations we want to do more but require funding to add programs.
    • 48. Use Achievements • Describe your current status in terms of achievements. – Think like a winner – Sing your praises – Describe your success
    • 49. Write Smart • Let the writing ripen • Find an ignorant reader • Edit, Edit, Edit! • Remember that writing alone won’t get the funding… you and your organization will.
    • 50. THE PLAN
    • 51. Fundraising Plan • Organizational Profile and Audit – Mission, Vision, and Values – Programs of activity – Current fundraising activities • Board and staff resources? • Case for support? • Financial condition? • Success to date?
    • 52. Fundraising Plan • Needs Assessment – Establish need levels for programs – Giving potential of current donor base – Potential for attracting new donors – Capabilities for carrying out plan
    • 53. Fundraising Plan • Plan Development – Establish overall and specific objectives – Update or write “Case for Support” – Design campaign strategies per program needs – Resources • Data gathering system • People – training system and support staff • Budget • Timeline
    • 54. Fundraising Plan • Implementation – Individual giving programs • Annual gifts • Special events (galas, benefits, auctions) • Major gifts • Planned giving – Corporate giving program – Foundation giving programs – Grants – Federal, state, local
    • 55. Fundraising Plan • Processing and Evaluation – Monitor giving – Acknowledgements – Adjust objectives and strategies as needed – Assess outcomes and adjust as required – Adjust data gathering system
    • 56. Next Class • In depth types of funders • Specifics about individual giving • Fundraising plan basics