Diversify Your Fundraising


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Featuring David Holmes of the Foundation Center Cleveland.

What’s the difference between a successful fundraising plan and a not so successful one? Diversification. It’s the same advice your financial planner will give you and it’s the same approach every nonprofit should take when crafting their fundraising strategy. Successful nonprofits know they need to cultivate multiple revenue streams through sound financial planning. If your organization has never developed a fundraising plan or calendar, this hour-long session is for you. It provides an overview of the process of strategically thinking through the components of a fundraising plan. You'll learn how to:
• Conduct an assets inventory.
• Develop a case statement.
• Identify potential funding partners.
• Prepare a fundraising plan and calendar.

Diversify Your Fundraising

  1. 1. Welcome!Diversify Your Funding:An Introduction to Fundraising Planning
  2. 2. Our Speaker David Holmes Regional Training Coordinator Foundation Center-Cleveland Currently responsible for creating, managing and delivering training programs in support of capacity building of nonprofits in Cleveland, and in the mid- western United States. BA in English from the University of Pittsburgh MA in Literature from Villanova University MS in Library Science from Kent State University 2
  3. 3. What You Will Learn TodayAn overview of how to developa diverse fundraising plan, including:• Conducting an assets inventory• Developing a case statement• Setting realistic fundraising goals• Diversifying funding partners• Preparing a timetable
  4. 4. The Importance ofFundraising Planning• Helps you set priorities• Increases board involvement• Assists in diversifying your fundraising vehicles• Limits crisis fundraising
  5. 5. Sources of Revenue for Reporting Public Charities, 2009Fees for Services & Goods from Government 23.2% Fees for Services & Private Goods from PrivateContributions Sources 13.6% 52.4% Government Grants 8.9% Source:The Nonprofit Sector in Brief, 2011. Other National Center for Charitable Statistics, The Urban Institute 2.1%
  6. 6. Securing Your Organization’sFinancial Stability
  7. 7. A Step-by-Step Approachto Fundraising Planning1. Presenting a strong mission statement and vital programs2. Conducting an assets inventory for your organization3. Creating a dynamic case statement4. Setting realistic fundraising goals5. Diversifying funding mix for your organization
  8. 8. A Step-by-Step Approachto Fundraising Planning, continued 6. Formulating strategies for raising money from individual donors 7. Formulating strategies for raising money from institutions 8. Putting the fundraising plan/calendar together 9. Making the approach/Building relationships10. Monitoring and evaluating your fundraising effort
  9. 9. Presenting a Strong MissionStatementSample mission statement “The mission of the Biloxi AIDS Service Organization is to help people both infected and affected by HIV/AIDS to secure adequate nutritional and health support to enhance their lives.”Sample vision statement “Our ultimate goal is a world without HIV/AIDS.”
  10. 10. Conducting an Assets Inventory for Your Organization
  11. 11. Assess Strengths in theFollowing Areas:• Program• Board and staff• Organizational• Funding
  12. 12. Case Study:Youth for Community ActionThe Youth for Community Action (YFCA) program was launched two years ago by alarge children/youth services agency to teach high school students leadership andcommunity organizing skills. Annual activities include monthly meetings, skill-building retreats, a free one week summer camp (run with other youth serviceagencies), and educational events.In the past year, 25 youth participated from two high schools. The majority ofparticipants from the first year stayed in the program. They currently have a waitinglist and they would like to expand the program to other high schools for a total of 50students. To do so, they need to almost double the program budget to $68,000.YFCA was made possible by $20,000 in seed grants from three foundations; todate, one has committed to continuing support. In addition, the youth have agreed tohelp with fundraising as part of their skills training, and some parents expressedinterest in contributing or helping to raise funds.YFCA fulfills an important need. It is the only project in the region that works withteenagers to promote activism in partnership with community organizations,government and educational institutions. The program is successful, with the needto expand its services. The challenge is to find new funding sources and think ofadditional income streams.
  13. 13. Establishing Your Case forSupport• The reasons why your organization both needs and merits philanthropic support• Include: – Mission – Programs and services – Accomplishments – Plans for the future – Budget needs
  14. 14. Setting Fundraising GoalsTypes of fundraising goals• Annual goal for the organization – Example: $150,000 total budget - $50,000 projected earned income = $100,000 annual goal• Program goal – Example: YFCA program: $68,000 budget for the year
  15. 15. Diversifying the Funding Mix forYour Organization• Which funding partners do you currently have?• Which funding partners are viable for your funding mix? Which partners will provide long-term security?• What level of support can you expect from each partner?• How much time and money will it take to secure additional partners?
  16. 16. Putting the Fundraising Plan/Calendar Together1. Set a goal for each revenue strategy2. Think through the details: who, when, what, where, and how.3. Create a chart or narrative description outlining the details
  17. 17. Example: Fundraising fromIndividuals—The Gift Table1-2 gifts = 20% of the goal $20,0002-4 gifts = 20% of the goal $20,0005-10 gifts = 15% of the goal $15,00010-20 gifts = 10% of the goal $10,00020+ gifts = 35% of the goal $35,000 TOTAL $100,000
  18. 18. Monitoring and Evaluating YourFundraising Efforts• Was the money raised worth the expenditure of time and effort?• Laying the groundwork for next year
  19. 19. Review: Strategic Fundraising—The Steps to Success• Identify your organization’s strengths and assets• Create a case statement• Set realistic fundraising goals• Diversify funding mix for your organization• Put together a fundraising plan and timetable• Evaluate strategies to lay the groundwork for future fundraising
  20. 20. Resources on Fundraising Planning• Securing Your Organization’s Future, Chapter 22, “Choosing the Funding Mix” foundationcenter.org/getstarted/onlinebooks/seltzer/ text.html• Free Management Library: Nonprofit Fundraising managementhelp.org/fndrsng/np_raise/np_raise.htm• Fund-Raising Forum Library raise-funds.com/library.html• Grassroots Fundraising Journal grassrootsfundraising.org• Society for Nonprofit Organizations: Fundraising Guide snpo.org/funding/index.php
  21. 21. Questions• Please type in chat at the bottom of the left hand viewing pane. 23
  22. 22. FYI• Contact David: dmh <at>foundationcenter <dot> org• Connect with Sage – Email nps <at> sage <dot> com – Download the presentation and handouts from www.slideshare.net/sagenonprofit – Read our blog, http://www.SageWords.net. – Like us on Facebook, http://www.facebook.com/sagenonprofit – Follow us on Twitter, http://www.twitter.com/sagenonprofit – Join the discussion in our group on LinkedIn. – Watch and follow on YouTube, http://www.youtube.com/user/SageNonprofit – Pin with us on www.Pinterest.com/SageNonprofit 24