Nysca dec fund dvlpment[1]


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Nysca dec fund dvlpment[1]

  1. 1. Fund Development forDEC Coordinators<br />Exploring Fundraising and Resource Generation<br />
  2. 2. Key Learning Objectives<br /><ul><li>Role of fund development for organizations and DEC grantees
  3. 3. Learn the various fund & resource development responsibilities
  4. 4. Learn the components of a development plan & how to formulate & implement strategies
  5. 5. Explore strategies for communicating your impact</li></li></ul><li>The Need for Resources and Support<br />Economic Downturn<br />Competition for funding<br />DEC grants and overall project costs<br />Understanding and Implementing Fund Development<br />
  6. 6. Fund Development Responsibilities<br />Accountability<br />Ethical Principles<br />Oversight<br />Participation<br />
  7. 7. Accountability<br />Awareness & compliance with the intent of federal, state & local laws regulating charitable solicitation<br /><ul><li>Attorney General’s Office
  8. 8. IRS
  9. 9. Other</li></ul>Establish & exercise adequate controls over fundraising activities<br />Accuracy, integrity & accountability in all solicitation activities, materials, representations, etc.<br />
  10. 10. Ethical Principles<br />Motivated by mission, merits & resource needs<br />Respect for the privacy of donors<br />Administrative & fundraising expenses should be fair, reasonable, documented & disclosed (reported on IRS Form 990)<br />
  11. 11. Oversight <br />Establish an appropriate governance structure<br />Ensure development efforts meet the budgetary needs<br />Ensure resources are available to maximize returns<br />Develop a development plan<br />
  12. 12. Participation<br />Personal contribution<br />Involvement<br />Identifying and cultivating resources<br />Government relations<br />Solicitation<br />
  13. 13. Who’s on First?The Development Committee<br />Prepares Development Plan<br /> Models and encourages involvement in implementation<br />Monitors and reports progress<br />Evaluates efforts <br />Revises plan<br />
  14. 14. Why have a Plan?<br />Challenges & replaces magical or wishful thinking<br />Coordinates people, fund raising & marketing efforts with the organizational strategic plan<br />Gets “buy-in” from participants regarding:<br />Goals<br />Roles<br />Priorities<br />Accountability <br />
  15. 15. Why have a Plan? (cont’d)<br />Helps to pace your annual efforts<br />Great orientation tool for partners, volunteers, Board and staff<br />Creates understanding of everyone’s fund raising roles & responsibilities<br />Is outcome-based & measurable which helps you learn & measure your success <br />
  16. 16. Strategic Questions to Ask<br />What are the real needs for the project<br /> or organization?<br />What are we raising money for?<br />Would funds raised effect existing funding streams?<br />Where have the resources come from in the past?<br />What are our funding trends?<br />Are the funding streams diversified?<br />What would be the impact of a funding cut from any source?<br />What are we good at? <br />
  17. 17. What is a Development Plan?(or…taking the gamble out of fund development)<br />A detailed plan that describes how you intend to secure donated resources. It includes: <br /><ul><li>The case for support
  18. 18. Fund Development environmental analysis
  19. 19. Goals & Objectives
  20. 20. Strategies
  21. 21. Human resource needs
  22. 22. Budget
  23. 23. Timelines
  24. 24. Accountability
  25. 25. Evaluation</li></li></ul><li>Developing Your Case for Support<br />What do you need money for?<br />How much do you need?<br />Why would someone want to contribute?<br />Benefits to participants or audience<br />Benefits to the donor<br />Benefits to the community<br />
  26. 26. Analysis of Fund Development Environment<br />External Environment (Opportunities & Threats)<br /><ul><li>Competitors
  27. 27. Community awareness & relationships
  28. 28. Perceptions of activities (quality & need)
  29. 29. Economy</li></li></ul><li>Analysis of Your Fund Development Environment (cont’d)<br />Internal Environment (Strengths & Weaknesses)<br /><ul><li>Evaluation of previous efforts
  30. 30. Staffing capacity & support
  31. 31. Financial management infrastructure & technology
  32. 32. Fundraising software
  33. 33. Budget available for development efforts
  34. 34. Volunteers’ commitment to fundraising
  35. 35. Marketing materials</li></li></ul><li>Identify Your FundraisingStrategies<br />On-lineactivity<br />Special events<br />Direct mail<br />Radio, television or print ads<br />Phone-a-thons <br />Face-to-face solicitation<br />Other?<br />
  36. 36. Each Strategy Serves a Purpose<br />While it may not offer the greatest immediate<br />financial return, it may:<br /><ul><li>Establish credibility
  37. 37. Generate positive public exposure for organization and increase public awareness
  38. 38. Reach out to potential new donors
  39. 39. “Set the table” for future gifts
  40. 40. Involve new volunteers--your best ambassadors in the community
  41. 41. Raise the profile of your cause or mission</li></li></ul><li>Develop a Master Budget<br />It takes money to raise money, but how much can you afford?<br />Remember that time is money - if it takes time, there is a cost<br />Even volunteer-driven fund raising efforts require adequate staffing, space & technology to support volunteers<br /> Remember to include all costs (direct or hidden):<br /> Staff time<br /> Space and technology needs<br /> Marketing & advertising<br />
  42. 42. So How Did We Do?<br />Evaluating the Plan<br /><ul><li>Review & fine-tune the plan annually
  43. 43. Were costs reasonable compared to income?
  44. 44. Were targets & outcomes realistic?
  45. 45. Consider the non-financial benefits of each effort
  46. 46. Are you moving toward your long-term goals? </li></li></ul><li>Who Receives the Money?<br />Source: Giving USA 2010<br />
  47. 47. Why Focus on the Individual?<br />Source of 75% of charitable contributions<br />Need for unrestricted dollars<br />Reduced funding from government and foundations<br />Builds a broad-based support <br />Requires Board involvement and Builds LOCAL support<br />
  48. 48. Key Concepts in Fund Raising<br />Development is the process of building relationships<br />Fund-raising is setting up opportunities to actually ask for money<br />80% of the money you raise will come from 20% of the donors<br />Lower income people give a greater percentage of their income than wealthier donors<br />The #1 reason people don’t give is because no one asked!<br />
  49. 49. Success Rate of Fund Raising ActivitiesBased on Ratio of Time Invested to Financial Return<br />Personal face to face ask by a known peer 50%<br />Personal phone call by a known peer 30%<br />Personal letter by a known peer 15%<br /> (on their stationery)<br />Phone-a-thon (by a volunteer or paid caller) 10%<br />Direct Mail 1-5%<br />Special Events Least Effective<br />
  50. 50. 2009 Online Giving Update…<br />The average online gift in 2009 was $144.72. That represents a 5% decline from 2008, but remains significantly higher than other fundraising channels. <br />
  51. 51. Messages that Connect<br />Is it right for your audience?<br />Keep it Simple<br />Make it memorable<br />Unexpected<br />Concrete<br />Emotional, tapping into positive or negative feelings <br />
  52. 52. Change Your Message…<br />Your Message Doesn’t Have to Be…<br />Telling<br />A Mission Statement<br />Three paragraphs Long<br />An “About Us” Page <br />Expensive<br />
  53. 53. Why Me?<br />Why Now?<br />What For?<br />
  54. 54. “I love saving you money.”<br />(I know what you want)<br />
  55. 55. The “New” Cultivation Process…<br />Stop being a not-for-profit.<br />Why do we define our selves in the negative? It makes no sense.<br />Does your organization exist to ‘not make any money?’<br />Or, does it exist to save lives, change lives and impact lives.<br />Connection to Impact Drives Potential for Income.<br />Source: www.forimpact.org<br />
  56. 56. Cultivate Plants… Relate to People…<br /><ul><li>Old: The higher the ask the longer the “cultivation period.”
  57. 57. New: The bigger connection to impact the better the partnership
  58. 58. Old: Major gifts are infrequently asked for or given and require a personalized cultivation plan and solicitation.
  59. 59. New: Partnership opportunities are presented when good partners present themselves. Both parties bring value to the table and help each other reach their goals.
  60. 60. Old: Nonprofit “charities” ask for donations. Giving is the ‘right thing to do.’
  61. 61. New: Nonprofit businesses provide opportunities to invest in your community, and see the return for the people, region, cause you care about.</li></li></ul><li>Remember Why People Give<br />Share goals the organization pursues<br />Personal connections with staff, board, clients or volunteers<br />Personal gratitude toward the organization<br />Involvement in the life of the organization<br />Enlightened self-interest<br />Being asked<br />Joy<br />
  62. 62. Case Study In Making It Simple: “In A Nutshell”<br />“The Soap Box and Toolbox for New York’s Nonprofits.”<br />
  63. 63. What’s Your ‘Impact Statement’?<br />Impact Statement<br />WHAT<br />WHY<br />HOW<br />
  64. 64. Best Practice Summary<br />Choose your fundraising methods strategically<br />Build organizational capacity and infrastructure<br />People give to other people - establishing relationships are key<br />People give because of self-interest - know what motivates your donors<br />You are asking for investments and partners, not charity and prospects<br />Developing a compelling message is critical<br />Money follows people - get prospects involved<br />Few people give without being asked<br />
  65. 65. Added Ideas, Comments, Questions???<br />