Moving the Needle: From Great Annual Fund Raising to Great Capital Planning
Moving the Needle: FromGreat Annual Fund Raising to Great Capital Planning SUSAN BENDER SENIOR VICE PRESIDENT/CHIEF DEVELOPMENT OFFICER
Readiness Assessment Stable annual campaign? Event driven or donor based giving? Board giving percentage vs. outside support $$ and percentage of each.
Type of Campaign Bricks and Mortar? Aged building? Lack of space for programs. Catastrophe repair? Building Committee?
Endowment/Programmatic Population cannot pay for services in large enough proportion to cover cost. Federation or other funding not likely to rise, indeed falloff expected. Program deemed too important to allow to be trimmed or discontinued. No funds available to expand programs into new areas.
Annual Funds Analysis Sources of program support? Dollars by program vs. operating cost of program. Membership covers which costs to what degree? Additional income from galas, foundations, individual donors, planned gifts? Identify gap. How are you currently closing it or do you have a deficit?
Metrics How many members contribute over and above membership fee? How many use facilities regularly without capability to pay? How many contribute but do not use facilities? Why? Population analysis…are you serving a constituency with no support capability. Is your Board/Donor base willing to continue this? Percentage yes or no.
Campaign Preparation Assuming Board wishes to at least assess a campaign. Feasibility Study: How to construct a viable study. Who should be interviewed? Use of a consultant to do this.
Campaign Preparation (cont.) Clarity of assessment to be decided upon BEFORE any study begun. Costs associated with Feasibility Study. How will this be covered? Staff assessment…if the study concludes to go forward who will staff campaign?
How to go forward from the Feasibility phase? Size of campaign. Board agreement ? Disagreement? Staff capability: enough people or need to hire? Need for Architect? Fees?
How to go forward from the Feasibility phase? (cont.) Consultant to execute campaign? Cost associated? Staff interface? Campaign to be one phase or more? Pledges payable over what period? Planned giving allowed? How?
Assuming Acceptance of findings Financing of early stages: how? Who? Over what time period?
Creation of Institutional Needs Assessment Committee MOST CRITICAL STEP Who should be on the committee? How big should it be? Insiders and Outsiders? Number of meetings and frequency. Who does cost analysis of each item?
Presentation of Findings to the Board Who presents? How to handle questions? Presentation of time line for expenditures: construction costs have a different time line. Payment schedules for consultants/contractors. Financing arrangements in house to avoid any debt. Phases for campaign i.e. construction phase followed by program endowment?
Case Statement Development Board Committee to help on this, who do you select? Finance materials to substantiate case. Donor recognition categories.
Fundraising Pyramid Overall campaign size will drive lead gift. How to determine that gift size. Do you have donors to consider for lead gifts? How many? How do you know?
25 Million Dollar CampaignNumber of Donors Monetary Contribution 1 $2.5 Million 4 $1 Million 6 $500,000 10 $250,000 12 $150,000 30 $100,000 50 $50,000 60 $25,000 135 $10,000 Campaign Total = $25 Million
25 Million Dollar CampaignNumber of Donors Monetary Contribution 1 $5 Million 2 $2.5 Million 4 $1 Million 6 $500,000 8 $250,000 10 $150,000 15 $100,000 20 $50,000 40 $25,000 100 $10,000 Campaign Total = $25 Million
Board is capable and willing and you have prospects for major gifts and major naming opportunities Construction or refurbishment time line from contractor? How long does he estimate? Can you raise costs for this in advance of starting the project? Will it become more expensive?
Board is capable and willing and you have prospects for major gifts and major naming opportunities Does lead gift have to be associated with TOTAL $$ i.e. $25,000,000? Do you need to have shorter payoff on these pledges? Allow financials to drive your argument.
Assume three years to complete $10,000,000 firstphase with almost all construction costs covered infirst year both pledged and paid.Nothing succeeds like success! Move directly intosecond phase as soon as possible. Try to accomplishtotal $25,000,000 in five years. Understand that laterpledges MAY require extended payouts.
Use of Gala to move into final phase How to expand donor base? How to recognize donors? How to create excitement? Who should Chair? Who should be honored? How does this help to expand your annual campaign and giving levels?