Fundraising Plan Final

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Executive Statement
Board Members and Executive Director of The Wren’s Nest,
Hello my name is Katy Gardner. I have been asked to consult on the current state of
fundraising of the organization and offer recommendations on what The Wren’s Nest can do to
improve its fundraising prospects.
Over the past 10 weeks I have reviewed the current standings of The Wren’s Nest and
current programming, financial and fundraising efforts are not enough to keep the organization
alive. Over the past three years the company has run a deficit and taken on more debt than it
can handle. And even though revenue increases annually so do expenses.
Program missions and goals are noble and work to better the community but without
the support of donors in that community those efforts go under utilized. Currently there are no
donor acquisition campaigns through letters, emails or events. Fundraising documents are out
of date and confusing and proper measures in prospect research for grants and major donors
are not being upheld.
The Wren’s Nest is currently in an identity crisis. Much of this confusion comes from the
fact that the organization does not have a clear vision of what it wishes to accomplish. This is
reflected in their vague mission, strategic plan and informational documents.
The organization is at risk of not being able fund its programs and possibly closing its
doors if the situation does not improve. However this means that there is a large potential for
growth and improvement if the proper measures are taken.
Through extensive research and observations I have identified several areas in which
The Wren’s Nest can improve its fundraising and future support.
Included in this fundraising plan is an extensive examination of current financial and
fundraising situations identifying areas for opportunity and growth as well as
recommendations as to how The Wren’s Nest can best utilize their resources to secure funding.
Also enclosed with this report are several fundraising documents to serve as examples of how
to properly solicit donations from various sources.
It is my hope that with this knowledge and recommendations that The Wren’s Nest will
be able to move forward and grow to become a healthy and thriving organization. With proper
funding and support your organization can grow to service not just West End but the entire
Atlanta region.
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Table of Contents
Executive Statement …………………………………………………………………………..1
Table of Contents ……………………………………………………………………………….2
Organization Goals and Objectives ………………………………………………………3-4
CurrentFundraisingConditions ………………………………………………………….5-20
Financial Perspective………………………………………………………………..6-17
Summary of Past and Present…………………………………………..6-11
ComparativeDateRelated to Industry ……………………………...12
Analysis…………………………………………………………………………..13-15
Other TrendsImpactingUnearned Income……………………….16-17
Non-FinancialPerspective………………………………………………………...18
Evaluation of Transparency and Governance……………………………..19-20
FundraisingSWOTAnalysis………………………………………………………………..21-22
Financial Strengths and Weaknesses………………………………………….21
Non-FinancialStrengths and Weaknesses………………………………….22
Opportunitiesand Threats ………………………………………………………..22
Recommendations……………………………………………………………………………..23-27
Campaigns………………………………………………………………………………..23-24
FundraisingDocuments …………………………………………………………….24
ProspectResearch …………………………………………………………………….25
Individualand Major Donors………………………………………………….....25
Corporationsand Foundations……………………………………………….....25
GrantWriting…………………………………………………………………………...26
General FundraisingEfforts………………………………………………………26
Board Involvement…………………………………………………………………...27
Conclusion ………………………………………………………………………………..27
Campaign Materials ……………………………………………………………………………28
Conclusion …………………………………………………………………………………………29

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Organization Goals
and Objectives
Currently the biggest obstacle facing The Wren’s Nest is that they themselves don’t know
who they are or what they stand for. History tells us that The Wren’s Nest exists to preserve the
home and memory of Joel Chandler Harris and African American folklore and traditions. They have
also recently started offering literacy programs for local middle and high schoolers.
At first glance these three topics have nothing in common and currently only two of them are
reflected in the mission statement of the organization. Educational programming is not mentioned
at all, however it is the most extensive program that the organization offers.
This kind of identity crisis begins with an organization trying to do too much that is not
central to its mission. And if the organization itself is unclear as to what they are doing and why, it
certainly comes across that way to the public and only serves to create confusion and a lack of
interest in that organization, no matter how noble or honorable its intentions.
The best way to remedy this is for an organization’s Board of Directors and top leaders
reexamine the goals and objects that the organization would like to accomplish and evaluate how
those reflect and further the mission of the non-profit.
In the case of The Wren’s Nest it call seems from the beliefs of Joel Chandler Harris, not the
man himself. It is an important part of Georgian and National history to study the life of the great
author and his works, but the focus needs to be on his beliefs and his legacy. His belief that anyone,
no matter how poor or uneducated could learn to read is the reason that The Wren’s Nest seeks to
educate local children and teens about the joys and benefits of writing. His belief that the African
American culture was important enough to preserve through time, that is the reason the
organization continues the oral tradition of storytelling. This way the goals of The Wren’s Nest are
about more than just a man, but a set of morals and beliefs that are timeless and drive the
organization forward to provide a better future.
The best way to for the organization to do this is for the Board to examine what beliefs and
morals they want to uphold and how those morals relate to the goals they want to accomplish as an
organization. All of this should be examined and set forth in a strategic plan with goals and objects,
methods as to how those goals are going to be met and when those goals are going to be met. The
strategic plan should then be examined and reevaluated at least once a year to determine how well
the organization is doing in meeting its goals and what needs to be done to ensure that goals are
meet and exceeded in the future.
All of this information should then be condensed into a new revised mission statement to
communicate the organization’s values and goals. This may seem simple, but it can make a huge
difference. What you do and why should be the absolute first thing that someone knows about the
organization and there should be no doubt in their mind about what you do. This allows them to get
to know you, to connect their personal beliefs with yours and then begin to grow and support you
both intellectually and financially.
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Revised Mission Statement :
Our mission is to promote, educate and expand the tradition of oral history
and storytelling as well as authorship through historic preservation,
educational programming for children and young adults, learning and career
development opportunitiesand publications.
Example Fundraising Goals and Objectives:
Expand the Current Donor Pool by 15% in 5 years
 Run bi-annual (2 times a year) donor mailing campaigns to cultivate
potential donors and members
 Run email campaigns to solicit donors online
 Revise fundraising materials and documents so that they are up to
date and engaging for potential donors
 Incorporate fundraising efforts into community events held at The
Wren’s Nest
Increase donor gifts by 5% in 5 years
 Start and email and newsletter initiative to keep donors engaged and
up to date on current events with the organization
 Increase prospect researchinto potential major donors
 Increase stewardship initiatives and cultivate major donors through
events and personal meetings
Increase and Diversify Grant Funding for the Scribes and High School
Publishing Program
 Utilize local resources from The Community Foundation and the
Foundation Center to research current trends and issues involving
grant funding
 Use established databases to research prospective grants that align
with our missionand goals
 Cultivate relationships with prospective foundations through their
profferedmethods of contact
 Establish schedules and deadlines for grant applications to ensure
that they are written and completedin a timely manner
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Current Fundraising
Conditions
Currently fundraising efforts are minimal and not effectively funding the needs of the
organization. This is partly because of the lack of established and communicated values of The
Wren’s Nest to the public; that includes donors. Without an emotional connection to the cause that
you support, donors are unlikely to give and if they do it will not be nearly as much as it would be if
they were cultivated with a value based approach.
The Wren’s Nest also is not taking any major strides in cultivating more donors. There are
currently no known letter writing campaigns or membership initiatives being solicited to the public
to get people interested in donating. Research and cultivation efforts are not being put in to the
donors that are currently with the organization and proper measures are not being taken to move
those donors to major giving status.
Without the leadership of a Development Director the organization is floundering and
having difficulty approaching potential donors and keeping and moving them through the donor
cycle of gradually becoming more and more invested in the organization.
Most donation solicitation is being done online, which is a great tool, but most of the time
these donors have had very little contact with the organization. They are not present to see the
beautiful house or hear the storytellers in person so they are unlikely to give much in the way of a
donation. Donors give because there is a personal connection between them and the people who
run an organization. The Wren’s Nest needs to go out and work to establish that personal
connection with as many people as they can through letters, emails, events and stewardship to
attract and establish supportive, long-time donors.
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Fig 1
Budget
The most concerning aspect of The Wren’s Nest’s finances is that they are consistently
operating above their budget. For the past three years revenue has been steadily growing, however
so have the expenses. (Fig 1)
In 2011 expenses exceeded the revenue by 14%, leaving a $27,348 deficit. This gap in
income and expenses has been slowly shrinking with 2013 ending in a $9,728 deficit (a 4%
difference), but this is the kind of occurrence shouldn’t be a trend or slowly made up for. Every
precaution and measure needs to be taken to ensure that the company does not operate on a
constant deficit and the issue should be rectified as quickly as possible. The budget should be
reviewed and adjusted no less than once a quarter.
0 50000 100000 150000 200000 250000
2013
2012
2011
Expenses
Income
Financial Perspective:
Summary of Past and Present
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Where is the Money Coming From?
For the money that is coming in to The Wren’s Nest, it is actually rather diverse in it’s
sources. As shown in Fig ??? 41% off all income is from individual donations and contributions and
another 18% is coming from earned revenue (tour and book sales, merchandise, rental etc.). These
income sources make up the first and third largest contributors to income.
This is a good indicator as these methods should be the highest contributors to an
organizations income. Donor contributions and earned revenue are the areas of income that the
organization has the most control over. You can monitor you own donor acquisition and
stewardship efforts as well as promoting the programs that generate revenue. This way if the
government does decide to cutback on grant funding or the organization is not approved for the
foundation grants it was hoping for it is not such a huge blow to the organizations funding.
That being said there are still several concerns with this information or lack thereof. Very
little information is given about the break down of each of these categories of giving beyond their
total. Going off of the information provided in the company’s most recent 990 it shows a very
different picture.
Income Sources 2013 (total $211,928)
Individual Contributions ($86,449)
Foundation & Corporation Grants
($55,859)
Government Grants ($20,820)
Net Assets ($11,017)
Earned Revenue ($37,783)
Individuals
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In Fig ??? we can see that most major gifts are actually coming from corporate, government and
foundation sources. This shows more dependence on these types of funding than an initial
examination of sources would have. This shows that even though, as a whole, individual
contributions are making up a large percentage of income, it is coming from smaller donations,
not major gifts. The Wren’s Nest is reliant on government and foundation grants for large sums
of money to pay for operations and programming. Were these to be taken away it is
questionable if the organization would be able to operate without them.
0 2000 4000 6000 8000 10000 12000 14000 16000
Government
Foundations
Corporate
Individuals
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2011 (total$189,556)
Program Expenses (Less
Salaries)($91,514)
Salaries ($56,269)
Management & General ($32,478)
Fundraising ($9,295)
2012 (total $195,760)
Salaries)($83,932)
Salaries ($64,786)
Management & General($34,058)
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2013 (total$221,069)
Salaries)($83,946)
Salaries ($86,569)
Management & General ($39,043)
Where is the Money Coming From?
The next step in the process is understanding where the income from individuals, revenue
and grants is being spent.
Over the past three years The Wren’s Nest has been consistently spending over 75% of its
expenses on the programming it provides. This should be a major focus for organizations as their
programming is what helps them accomplish their mission. Still 75% for an organization that is
consistently operating on a deficit raises some questions. Information can be found on the
breakdown of costs and how much is spent for certain needs, but the company needs to internally
examine how efficient it is being with what it has. Is it really necessary to spend the money that is
being spent or can measures be taken to increase how effectively resources are being used so you
can cut down on costs?
The salary component of program expenses has been broken out to illustrate an important
component. Salary costs have been growing exponentially over the past three years. In 2013 it
surpassed not only other programming expenses, accounting for over half of total programming, but
all other expenses for the organization. The major question here is this due to program expansion
and more teachers, or are the teachers getting paid more over the years?
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While salaries are going up other program expenses are going down. The company is also not
publishing any other numbers regarding the program, such as number of students served, number
of mentors working for the program, how many storytellers are performing and how regularly.
Without this supporting information it is impossible to tell if the program is actually growing or not.
That makes these numbers seem suspicious and warrant some examination and follow up to what is
going on with all of this money that the company is spending.
Another concerning aspect is how little the company is spending on fundraising. It may seem
counterintuitive for an organization to cut program or operational expenses and increase
fundraising efforts, but investing in fundraising and marketing is investing in the longevity and life
of the company. If very little time and effort are spent on cultivating donors and people who are
interested in the programs that you offer very soon there won’t be any programs to fund. Donors,
particularly major donors, take time and effort to cultivate but once they are emotionally invested in
the company it will be much easier to secure greater funding for your programming and operations
from your donations. Don’t ignore potential donors just to give more money to programming.
Chances are you are going to make that money back through donations; it just takes some time and
planning.
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Comparative Data Related to
Industry
So how does the Wren’s Nest compare to other similar institutions? Small house museums
like the Wren’s Nest generally have two options when it comes to resources: they can try to operate
on their own and find a way to generate income, like the Hammonds House Museum and Gallery, or
they can partner and attach themselves to a larger institution to share resources, just as the
Margaret Mitchell House is a part of the Atlanta History Center.
2012 figures Net Assets % of Fixed
Assets to
Total
Assets
% Program
Expenses to
Total
Expenses
% Gen/Admin
Expenses to
Total Expenses
% of Salary
to Total
Program
Expenses
Wren’s Nest $202,916 93% 76% 18% 47%
Hammonds
House
$365,573 16% 72% 17% 58%
Margaret
Mitchell
House (ATL
History
Center)
$94,534,462 27% 66% 28% /
When comparing the Wren’s Nest to these other two organizations they do appear
remarkably similar. The percentage of where expenses are spent is fairly consistent and the Wren’s
Nest is even doing better in some respects. However the difference comes down to the amount of
assets. Wren’s Nest is the lowest with the Hammond House not too far behind and then of course
the History Center far surpassing both of them.
At first glance the Wren’s Nest isn’t doing so bad for its size, until the amount of fixed assets
are taken into consideration. The Hammonds House Museum has 16% of their assets fixed and the
History Center is slightly more at 27%, which is reasonable due to its size. The Wren’s Nest on the
other hand has 93% of its assets fixed in the one building.
Having this high percentage of fixed assets is an indicator of cash flow problems that can
greatly reduce the organization’s ability to pay bills and fund operations. And continuance of this
kind of financial issue without trying to rectify it is only prolonging the problem.
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Analysis
Fig
Statistic/Year 2011 2012 2013
Working Capital* $216,195 ($1,635) $15,136
Current Ratio** 3.66 .88 2.53
Solvency: Debt-Asset Ratio*** .27 .33 .33
% of Fixed Assets to Total Assets 99% 93% 89%
Solvency: Debt-Equity*** .36 .5 .5
*Higher the $ amount the more liquid the company
** Number should be at least 1 to be liquid
***Number should be below .4
An important aspect to be considered when examining the financial health of an organization
is the corporation’s current assets and liabilities. Not to be confused with income and expenses,
assets and liabilities allow us to examine the company’s debt versus what it owns.
The financial ratios working capital and current ratio examine all current assets and
liabilities (those being used within the year). Working capital is simply how much more money does
the company have in current assets than it does in current liabilities. This number should be as high
as possible. Current ratio also examines current assets and liabilities and interprets their ratio in
decimal form and should at least equal 1. These two numbers tell us how liquid a company is, how
much cash they have on hand and if they can pay their liabilities within the coming year.
In The Wren’s Nest’s case there has been some major fluctuation in these numbers over the
past three years. 2011 and 2013 are very liquid and show that the company can easily pay its short-
term debts. 2012 however more money was owed overall than what the company had. This could
be a one-time occurrence and more detail about that specific year would be needed to fully examine
why that was and if it is something the company should expect to happen again.
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Analysis
Solvency on the other hand examines the company’s long-term liabilities and if it can pay its
long-term debt. This number should be below .4 to indicate if the debt could be paid off. The Wren’s
Nest is doing well in this aspect too, even though there is a major $80,000 loan that still needs to be
paid off. However much of this has to do with the company’s major fixed assets.
The Wren’s Nest’s greatest asset is the house and the land itself. This is not uncommon for a
house museum simply due to the nature of the work they do, however these numbers are somewhat
concerning. When examining the percentage of fixed assets compared to total assets it is alarmingly
high, making up 89%-99% of all assets. What’s more is that the house is almost completely
depreciated. The land my appreciate in value, but in a few years the house will be only be worth the
salvage value as far as assets go. Knowing this, and the fact that not only would it be difficult, but
very unlikely for the organization to liquidate by selling the property to pay off its debts, this gets to
be very concerning.
0 50000 100000 150000 200000 250000 300000 350000
2013
2012
2011
Long Term Liabilities
Current Liabilities
Long Term Assets
Current Assets
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Analysis
Another way to look at solvency is by examining total liabilities compared to Net Assets
(Total Assets- Liabilities). This is Debt-Equity ratio and like Debt-Asset it should also be below .4.
For The Wren’s Nest this criteria is met in 2011 but in 2012 and 2013 they cross the threshold with
a .5. Now this is not far off from where it should be and is most likely due to the major loan that
became a long-term liability in 2012.
From examining assets and liabilities the company is doing pretty well and even though they
are beginning to take on more debt than they should, it is still not too crippling at this point. So
something can be done to get finances in line to move toward a financially healthier organization.
Unfortunately when expenses and revenues are examined we don’t see that happening.
Fig
Statistic/Year 2011 2012 2013
Profit Margin -16.9% -14.2% -4.3%
A good way to examine the relationship between revenue and expenses is by looking at the
profit margin. The best way to examine profit margin is for the Board of Directors to agree upon a
set profit margin that they would like to adhere to. For The Wren’s Nest is this probably going to be
very low considering that they are a non-profit. However this ratio should never be negative and
unfortunately this is what we’ve been seeing over the past few years.
This is because The Wren’s Nest is not operating within their budget and are consistently
loosing money by providing the programs that they offer. This is the major issue that is going to
slowly chip away at all current assets and make it impossible to pay off any and all liabilities the
company may have. Throughout the past three years we see the profit margin getting closer to
breaking even, but operating outside of your budget and overspending should be a problem that is
handled quickly and aggressively, not slowly taken down over time. This will allow the company to
quickly get back on its feet and stay solvent so that it have slowly work off debt.
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Other Trends Impacting Unearned
Income
Since 2010 non-profits have been facing more and more difficulties in acquiring income.
With the economic crash and slow recovery competition for grants have become more and more
aggressive.
Deep cuts in spending and grants not only affected the government but also corporations and
foundations. Non-profits were left with nowhere to turn and found themselves competing for less
and less money against more and more applicants. Relationships between non-profits and donors
also became tense. As more of the financial burden of non-profits was passed to them, donors were
stuck trying to manage their own personal finances and losses. Donors that did give were more
specific about how their dollars were to be spent, cutting down on the amount of unrestricted funds
used to cover operational and management costs for organizations.
All of these cuts were particularly bleak for the arts. Spending priorities were shifted to cover
necessities such as healthcare, while cutbacks in luxuries and education were steep. Government
arts funding hit a record low in 2011 and is currently slowly making a recovery.
Non-profits in Georgia and the Atlanta area were hit particularly hard by this. Georgia alone
has sixteen of the top 400 non-profits in the US and five of the top 20 (more than any other state),
four of which are in Atlanta. The American Cancer Society, Habitat for Humanity and the Task Force
for Global Health are all major players that reside in the Atlanta area. Most of these large non-profits
are in the healthcare or human services sector which has always attracted more funding and is a
major force to compete with when grant dollars are stretched thin.
Georgia is currently ranked 50th in the US in arts funding. And despite outcry and efforts by
the local art community prospects of this going up are slim. Organizations are being put under
greater and greater scrutiny to be transparent and marketable to foundations and grant makers.
Sadly this is something that The Wren’s Nest is having difficultly with. Not only are they up
against some of the biggest non-profits in Georgia, but also major art organizations such as the
Woodruff Arts Center. The Wren’s Nest has very little presence amongst local organizations and
constituents and its lack of transparency makes them unlikely competitors for grants.
Another major aspect that has held The Wren’s Nest back from competing for a local
presence is its history and local perception. The Wren’s Nest has a checkered past full of racial
tension. Criticism against Joel Chandler Harris for becoming famous off of stories he learned from
black slaves and well as perpetuating black stereotypes have plagued the author’s legacy for
decades. And despite being in a predominantly black neighborhood, blacks were not allowed in the
establishment until 1984.
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Other Trends Impacting Unearned
Income
Although the organization has done away with these old policies and began moving forward
the stigma still lives on. In an article for USA Today former Executive Director Lain Shakespeare
described the reaction a girl scout trouble leader had when she suggested that the girls take an
educational trip; parents grew quiet and the room grew tense with her suggestion. This is the kind
of stigma that still exists.
The Wren’s Nest has done its fair share of educating and telling their side of the story with a
5-part essay entitled Everything You Know About Uncle Remus is Wrong and supporting literature
like Brer Rabbit, Uncle Remus, and the ‘Cornfield Journalist’: The Tale of Joel Chandler Harris by
Walter M. Brasch. However in order to have your side of the story heard you have to get people to
come out to your establishment and listen.
The full analysis of this issue is beyond the scope of this fundraising plan, but it is still a
major contributing factor as to why finding community and public support is difficult for The
Wren’s Nest. The past is the past, but the organization needs to find a way to differentiate itself as
well as its history and heritage from current negative connotations.
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Non-Financial
Perspective
The strongest tool that The Wren’s Nest has working for them right now are their literacy
programs. The Scribes and High School Publishing programs are the two major causes that the
organization supports. Not only are these programs inspirational and educational for the
community, they are also very marketable to donors and grant funders.
Both literacy programs mentor and assist young local children and teens and encourage
them to further their education. The West End neighborhood where The Wren’s Nest resides has
some of the most disadvantaged schools in the district and supplementary programs are sorely
needed. The Wren’s Nest is filling a dearly needed service.
But there are a few problems associated with this kind of program. It is hardly sustainable.
As of right now there is very little cost associated in enrolling for the Scribes or High School
Publishing program making it available to children who otherwise would have no means of taking
advantage of such a program. And instilling or raising enrollment fees could be detrimental to the
program and the mission that it serves. This can be difficult for an organization to overcome
because they will constantly need outside support from foundations and donors.
The good news is this is the kind of program that is easily marketable to grant funders and
donors. It is much easier to form an emotional connection and statement of need for a program that
promotes education to children. Finding support for this kind of programming is easily executed
with the right planning and tools.
Other programs such as the house tours, storytelling and rentals will need to be marketed to
individuals. Because they generate revenue the focus for these programs needs to be placed on
sustainability through providing these services to the public.
Greater effort will need to be placed on marketing, execution and customer satisfaction than
funding these programs through unearned income such as grants and donations. If these programs
can become self-sustaining than that will take a lot of financial pressure off of donors and grants and
those sources of income can be focused on the literacy programs and operation expenses.
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Evaluation of
Transparency and
Governance
Non-profit organizations must maintain the highest degree of transparency at all times. Lack
of transparency leads to distrust and potentially scorn of an organization. As an acceptor of federal,
state and public funds a non-profit must report all of its governance and make it publically available.
This not only allows people to see their money at work and what is being done with it, it lets them
know that you have nothing to hide.
Financially the company is very transparent. All important files and documents can be found
on their website and Guidstar. Most of these documents are straightforward and easy to read,
although lacking in some clarifying information (mostly from later 990 forms).
Governance of the organization is much harder to establish through the information
provided. By examining the 990s over the past few years it looks like the Board has changed slightly,
moving from fourteen to fifteen people in 2013. There are a few new and missing names in the past
few years so there has be some Board turnover. However, even though 990s and the website specify
that there are fifteen members on the board the website only lists nine names and affiliations listed.
There is also very little clarification as to the duties of each person on the board with most being
listed as a director and one person listed as Chairman or president. It is also something to be noted
that none of the upper management of the organization itself is represented on the Board of
Directors.
All of these things raise some questions about the governance of the organization and how
each person contributes to the Board or how the Board interacts with the employees and
management that work at the organization every day.
Information about the Wren’s Nest’s other functions however, programs who they serve,
strategic plan, etc, is opaque. There is little consistency in what the general public knows about The
Wren’s Nest and what is being told to them. The organization feels closed off and unwelcoming to
patrons and donors alike. And with the organization trying to part itself from a past of racial tension
transparency is a huge key in fighting that stigma.
Part of the problem is in the uncertainty of what the organization’s goals and objectives are.
If an organization itself doesn’t know what it wants to do then how are they to communicate
effectively those goals with their constituents and donor base.
Most of the problem however is in the information and materials provided by the
organization. There is no way for this information to be communicated clearly if the organization
understands them. Once that is accomplished all channels of communication need to be updated
and information needs to be easily accessible and understood.
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Evaluation of
Transparency and
Governance
For The Wren’s Nest most of the problem is that channels of information are convoluted and
out of date. The way most people obtain information about The Wren’s Nest is from the website.
The website however is difficult to navigate, hard to understand and difficult to find the information
one is looking for. Even once someone is able to navigate the site most desired information is out of
date or cannot be found at all.
Some 990 information is available, but not the most current. The information provided is not
as reliable as other sites like Guidestar. While other important documents such as core values and
strategic plan are not available at all. The history of the organization and program information is
sparse and leave a lot to be desired. Little to no information is available about the $2 million
renovation a few years ago. Nothing is said about where the money came from, where it was spent
or what exactly was done in the renovation.
Another aspect of transparency that is essential is Board membership and involvement. The
list of the Board of Directors must be up to date as well as their role and involvement in the
organization. Again on the website this information is most likely out of date and difficult to find.
All other materials are difficult to find, such as brochures and pamphlets about the
organization, and again are out of date.
In order to establish and maintain a healthy donor relationship with constituents a bond of
trust must be forged. That trust is difficult to gain when information is withheld or
miscommunicated. This can lead the organization feeling unwelcoming, closed off and withheld
from the public making them uninviting and unappealing to donors.
What’s the best way to avoid this? Share everything you do and make it easily available and
clear. This shows that you are active in pursuing your mission and you want to share your progress
with the world. People are very active on social media and the Internet and you need to make sure
that you keep up with them and hold their interest so that they keep coming back. This will all help
people get to know who you are, what you do and how you do it. This helps them form a bond with
you, one based on trust, and that is how loyal donors are made.
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Fundraising SWOT
Analysis
Strengths:
Financial
 Large amount of assets compared to liabilities
 Current assets/liabilities are liquid
 Increasing earned revenue numbers
Non-Financial
 Good programs that help support the
neighborhood and education
 National Historic Landmark with a long
history
Weaknesses
Financial
 Continuously over budget
 Large amount of debt
 Relies heavily on government and foundation
grants
 Large amount of fixed assets
Non-Financial
 Small donor base
 Little to no marketing or fundraising
campaigns
Opportunities
 Cultivate larger donor base
 Solicit larger donations fromcurrent donors
 Establish and maintain an operating budget
 Cultivate more diverse grant options
Threats
 Hundreds of other non-profits to compete
with in the Atlanta area including major US
non-profits
 Not competitive within the industry
 Lackof resources
Financial Strengths and Weaknesses
Financially there is a lot to be changed for the better at The Wren’s Nest, but there is a
foundation of assets to start with which will make the transition easier. With the assets and
liabilities currently under control, the organization can turn its attention to increasing revenue and
controlling expenses.
Adopting a strong operating budget and internal measures to make sure that that budget is
upheld is the biggest weakness facing the Wren’s Nest today. The company also relies heavily on
government and foundation grants and not enough on donations making them an easy target for
budget cuts and reduced spending.
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Fundraising SWOT
Analysis
Non-Financial Strengths and Weaknesses
The biggest non-financial asset that the company has is it’s educational programs. These are
currently the heart and soul of the organization and are devoted the most resources. They have also
beautifully restored the house and have earned the status of National Historic Landmark.
Unfortunately they are not putting these strengths to use in securing donations. Proper
research and cultivation efforts are not being taken leaving a gap in funding and support.
Opportunities and Threats
Having a strong operating budget that is stuck to every year is the best measure that the
organization can take at this time. Over the past few years the financial situation has been very
slowly increasing with more earned and unearned revenue. The majority of expenses are program
related, but with earned revenue increasing there is a possibility of those related programs
becoming self-sustaining and more of the focus can be placed on the programs that are not
generating revenue.
This process can be sped up with proper budgeting measures ensuring that the company
does not run deficits for another year running. This will give them the financial tools to begin
strengthening their finances and paying off their longstanding debt.
Another way to financially strengthen the organization is to begin putting marketing and
fundraising campaigns and procedures in place. These two areas receive the least amount of
funding yet they are directly correlated to how much income the company is making. Without a
strong donor cultivation initiative the company will continue to struggle.
The biggest threat that the Wren’s Nest has is that it is a small fish in a very large ocean.
There are much larger non-profits out there with many more resources competing for the same
money needed by The Wren’s Nest and if they continue to allow their weaknesses to overshadow
their strengths they will not be able to continue go up against these large organizations for money.
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Recommendations
Based on the information gathered and presented in this fundraising plan I have compiled
my recommendations of measures that The Wren’s Nest should take to improve future fundraising
efforts. Recommendations are based of the research conducted as well as observations of the
organization and usual best practices in fundraising across all organizations.
Campaigns
Annual Fund
This is should always be the largest and most active fund. This is all unrestricted funds
donated and usually goes to cover operating costs. Currently The Wren’s Nest is relying heavily on
online donations through their website. This is a useful tool however it should never be the primary
source of donation solicitation. There are also currently no letter or email campaigns being run at
this time.
Initiating donor acquisition campaigns should be the primary focus at this stage. The Wren’s
Nest needs to invest in a larger donor base and they have to do that by soliciting interest from
membership campaigns so that these people can be cultivated and engaged in the organization so
that they can support you throughout their donor lifecycle.
Program/Major Gift
Programming currently takes up almost 75% of all expenses and so should receive a major
focus in fundraising. Most of the programs and supported by major grants from the governments,
foundations and corporations. This is a good start, but there needs to be more diversification in case
grants one year fall through. This needs to be done through grant prospect research and major gifts
from donors meant specifically for the programs they are donating to.
In order to do that the organization needs to have a larger donor pool and conduct research
on the best ways to approach donors for major gifts. How to best cultivate major donors and grants
will be covered later in this section.
Capital Campaign
There are currently no capital campaign efforts right now and all prospects of such a
campaign should be held off. Capital campaigns require a strong fundraising base as well as
resources, Board involvement, and time. Currently The Wren’s Nest is not financially or
developmentally stable enough to support the efforts a capital campaign would require and should
instead focus their efforts on creating a strong fundraising base.
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Recommendations
Planned Giving
There are currently efforts to solicited planned gifts to the Wren’s Nest, however they are
being approached inappropriately. Most mentions of donations on the organization’s website are in
regards to planned giving or leaving. This should never be the case. Current donors should be
approached by offering or asking if they would like information on how to include the organization
in their will. The donor should already have an established relationship with you before this
information is ever brought up.
Fundraising Documents
Fundraising documents for The Wren’s Nest are in need of updating and revising. Most
current documents contain outdated information and do not offer clear concise information. This
includes the website. Currently as the largest fundraising “document”, the website confusing, poorly
organized and severely lacking in information regarding programs, history of the organization, goals
and objectives, strategic plan and community involvement.
In today’s world the easiest way for someone to get to know you as an organization is for
them to learn about you from your online presence. You not only need to be clear about who you are
and what you do, but you have to do it quickly. Online people spend very little time trying to
navigate something that they don’t understand; so having a confusing document or page that does
not offer instant gratification is going to drive away Internet traffic and people will quickly loose
interest.
Documents related specifically to donating are virtually nonexistent and the ones that are out
there are lacking. There is no current information on donor benefits or levels or what exactly your
donation would be going toward. The only donation paperwork available at the museum is a small
donor card that just lists donation levels, however it starts at a donation of $100 and goes up to
$2500. Not only is it unlikely for a patron to find this piece of paper while they’re exploring the
house, it is even more unlikely that they will be willing to donate $100 on the spot when they only
paid $7 to enter the facility.
The most important points to keep in mind when creating donor documents is to absolutely
clear about who you are, what you do, what people can do to help, and why they should help. Being
concise and clear on these aspects will help draw donors in. Also be sure to know your audience.
Someone asked to donate on the spot is more likely to give between $5 and $25 dollars. Whereas a
carefully solicited donor receiving regular letters and email correspondence is more likely to give in
the $100 to $1000 range. There is nothing wrong with smaller donors, just have them start there
and slowly work them up into higher donations over time.24

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Recommendations
Prospect Research
As of now there seems to be very few procedures in place for prospect research. This is easily
implemented as there are numerous online resources as well as local organizations such as The
Community Foundation and the Foundation Center.
Having access to The Community Foundation and the Foundation Center’s databases can
easily assist in conducing proper research to found your organizations projects and offer
information to get started on cultivating a relationship with a new foundation. The Foundation
Center also offers free training in the areas of grant writing and foundation relationships that
should be fully taken advantage of.
Individual and Major Donors
Most current donors to The Wren’s Nest are giving very little compared to what they could
or have given to other organizations. Just no one has asked them properly. Knowing who your
donors are is crucial to successful stewardship and extensive research needs to be done before
asking them for a donation. Armed with this information the organization can make an informed
decision as to how to ask the donor and how much to ask for. It prevents the donor feeling
uncomfortable and the organization from being shortchanged.
Another important aspect as to properly cultivating major donors is to spend time getting to
know them. Speak to them face to face at events or lunches several time with no mention of money
before you event begin planning an ask for a major gift. Let your donors feel comfortable and
connected to the organization and then ask for their help.
Corporations and Foundations
Over the past few years The Wren’s Nest has been receiving grants from the same
foundations and corporations. It is good to have a long-standing relationship with a company or
foundation, but getting dependant on one or two is dangerous.
A diverse selection of grants from different organizations for differing areas of interest is the
best way to ensure that your organization is not left empty handed if you did not receive the grant
you were hoping for.
Databases such as the Foundation Center’s help you find and research new grant prospects
that align with your mission and goals with those of the potential foundation. The Community
Foundation is not only a huge resource for grants and funding, but also offers information on trends
and statistics in corporate and foundation giving so that you can be better prepared in asking for
funding.
Grant Writing
Grant writing can be difficult, but with the proper preparation it can be effectively used to
your advantage. Before applying to any particular grant first come up with a basic template
25

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Recommendations
Grant Writing
Grant writing can be difficult, but with the proper preparation it can be effectively used to
your advantage. Before applying to any particular grant first come up with a basic template
consisting of a letter of interest, a statement of need, goals and objectives, organization background
etc. Have a template for each area of interest that you intend to apply to. Use specific information
and documentation on past projects and successes as well as reviews and personal accounts from
people who benefited from the programs you offer. Being specific helps you to make a connection
with the foundation as well as helps you to be clear about your past achievements and future
endeavors.
General Fundraising Efforts
Very little money is coming from general fundraising efforts such as membership, mailings
and events because none of these measures are currently in place. Most donor cultivation is done
through mail solicitation and events to get potential donors familiar with the organization and
interested in the services they provide.
Very few events are held at The Wren’s Nest and when they are very little effort is put into
generating interest in becoming an annual donor to support the organization. When someone is
actively engaged in enjoying what your organization has to offer is the best time to approach them
about making a contribution to what you do and the service you provide. Even if they decide not to
do it then, you put the idea in their head, which may come to fruition later.
It is for this reason that online soliciting techniques for donations should be a supplementary
to personal interaction. The Wren’s Nest currently relies heavily on website traffic to generate
donations, but most people using the website are just there for information and have never actually
be to the museum or participated in their activities. For this reason they are very unlikely to make a
donation at that time and they may never actually go to the museum much less come back to the
website.
The Wren’s Nest needs to take a more active role in engaging possible donors. They have
provided the tools to donate, but they need to start soliciting why donating to the organization is a
positive thing that should be considered.
26

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Recommendations
Board Involvement
At this time it is very unclear the amount of involvement that the Board of Directors take in
the operations of the organization, including its fundraising efforts. The Board of Directors is the
leader and face of the organization when it comes to major fundraising. They should take leadership
in financially supporting the organization they take control of and should have mandatory gift and
fundraising requirements for every year that they serve. Bylaws need to be adapted outlining these
requirements.
Board members should also take an active role in cultivating and asking major donors for
gifts. Breaking this task up amongst board members and upper management allows the
organization to utilize different strengths and approaches to asking for money while also
demonstrating an active and supportive Board of Directors.
Conclusion
There are several areas of improvement that The Wren’s Nest could focus on in improving its
fundraising prospects and most of them do need to be implemented and started from the ground up.
This can be very daunting, but can also offer a fresh start to the organization.
At this time the most important areas to focus on for The Wren’s Nest are creating updated,
clear and engaging fundraising documents about the organization, using those documents and well
as letter and email campaigns to establish and new and diverse pool of donors and utilizing
available resources to education themselves about proper grant, foundation and corporate prospect
research to further their funding efforts.
27

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Campaign Materials
Enclosed with this fundraising plan are several examples of documents that have been
created for The Wren’s Nest. These materials demonstrate the kind of documents that should be
presented to donors and grant funders to increase fundraising efforts.
Enclosed Are:
 Donor Acquisition Packet
 New Donor AppealMaterials
 New Donor OnlineAppealand Thank You Materials
 Institutional FundingGrantProposal
 Major Donor and GrantProspectResearch
 Special Event Presentation
 Major Donor Ask Script
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In Conclusion
29
In summary there is plenty of potential for the Wren’s Nest to improve their fundraising
prospects and the steps that The Wren’s Nest needs to take are clear.
The most important aspect to take away from this proposal is that organization needs to
formally establish clear idea of who they are and what they want to accomplish. Knowing the
answers to those questions will help guide the organization in making strong goals and
objectives, mission and strategic plan. Knowing the mission, goals and how the organization
plans to get there is the hardest obstacle that The Wren’s Nest has to overcome, but in doing
that several other things will fall into place.
Secondly The Wren’s Nest needs to draft an operating budget and consistently review
and alter that budget to avoid any further deficits. Issues of overspending will not solely be
solved by the income of more money. Sound financial and accounting practices should be
enacted now to establish a foundation so that revenue can be invested properly when it does
increase.
Fundraising focuses should be on communicating the organization’s newly established
values to appeal to donors. Letters, emails and events should target potential donors and
solicited them on their interests in the organizations and its programs. Fundraising documents
should be updated and revised to assist with donor solicitation.
Proper prospect research for major donorsand foundations should be conducted
through established databases such as the Foundations Center’s to find a diverse selection of
well-qualified grants. Local recourses should also be taken advantage of. Information on
funding trends, workshops and educational activities supplied by the Foundation Center and
The Community Foundation should be constantly utilized so that The Wren’s Nest can be
armed with the best knowledge to purse funding throughout the future of the organization.
Focusing efforts on fundraising at this crucial moment for the organization could be
indispensible. Fundraising is an investment that must be taken. Donors form the lifeblood of a
non-profit, but they must be engaged and befriended. It takes constant time, money and effort,
but a base of loyal donors and supports is crucial to the growth and success of a healthy
organization.

Fundraising Plan Final

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