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6 of 6 fund development

  1. 1. The Alberta Land Trust Alliance thanks the Alberta Real Estate Foundation for the generous funding provided for this project.
  2. 2. Alberta Land Trust AllianceJanuary 2011
  3. 3. Fund Development GuideIn Canada there are about 80,000 registered charitable organizations and another100,000 incorporated nonprofits providing any number of programs and services thataddress the needs of individuals and communities. They vary in size and complexity.Some are high profile while others are relatively unknown. Regardless, all organizationsshare the following basic principles of philanthropic and sponsorship funding: A clear sense of mission, the audience served and how the mission relates to each audience member. A shared vision—where the organization is going, what activities it will undertake, and how these activities impact the mission. Planning how to achieve the mission. Knowing how much its activities will cost.Of course, a myriad of factors such as level of risk, number of volunteers and number ofstaff will influence an organization’s ability to raise funds.Effective and successful fundraising is grounded in the organization’s mission andvision. Quite simply, fundraisers need to know how the organization will meetcommunity needs and what it will cost. This is communicated through descriptions ofprograms and services that bring the organization’s mission to life.Donors have forced organizations to change how they view funding. Today there mustbe a focus on target audiences. It is a shift in mindset from “money from everyone” to“sustainable funding from our closest friends.” Donors do not give becauseorganizations do good work. Sponsors don’t support you because they feel anobligation to do so. They give because giving satisfies one or more of their needs andbecause of what they believe the organization can do with their money. This means youmust look at fundraising through the donor’s or sponsor’s eyes.In summary, philanthropy – which can be defined as the sharing of time, talent, andtreasure for the common good – emphasizes relationships over money; it is a dignifiedprocess that helps generous people participate in programs that reflect their values andinterests and meet their need or desire for recognition, a sense of belonging and/or tomake a difference. Strong fundraising provides multiple opportunities to give.Alberta Land Trust Alliance 1January 2011
  4. 4. Fund Development GuideFund development is part of an organization’s strategic marketing and the process bywhich the organization uses fundraising to build capacity and sustainability. Funddevelopment is about building relationships with people, and other organizations, thatwill support the charity.Integrated fund development captures the purposes of fundraising (operating, capital,endowment), and for each prepares cultivation and solicitation strategies, timetables,budgets, roles and responsibilities, success indicators, progress monitors andevaluation.Trends in fund development have given rise to several guiding principles: Fund development must be integral to the business plan. Staff and volunteer leadership is critical. Fundraising volunteer recruitment is increasingly difficult. Branding is increasingly important. Donors need multiple and seamless giving programs. Asks must be personalized, strategic and professional. All fundraising must be conducted from a position of high ethical standards and practice.This written document is the key resource for staff, volunteers, donors and prospectivedonors to find answers about the organization, its mission, vision, values, priorities,goals and objectives. It is the donor’s investment prospectus.Sources of funding include individuals, companies, foundations, community groups, andgovernment programs. Every organization has a different pool of potential donors fromwhich to ask support. This is because every organization has a unique Case forSupport, provides different programs, serves different communities, and has leadersand volunteers who approach the work from their own perspective.Every organization must prospect for donors. The need for an ever-expanding numberof donors means researching each constituency to identify donors, evaluating theircapacity, willingness and interest, and qualifying their potential support.Alberta Land Trust Alliance 2January 2011
  5. 5. Fund Development GuideLeadership in fundraising is essential. Success requires a number of people who areprepared to champion the organization’s goals and objectives and work to communicatethese among potential donors. Of all the characteristics desired in a fundraisingvolunteer, the willingness to engage others in discussion is the most prized. Fundraisingis a communications activity in which those who can tell stories and paint mentalpictures of “what might be” for prospective donors are the most successful.Stewardship is not gift recognition. Stewardship is the sum of all the things anorganization can do to continue the relationship with a donor. The objective of goodstewardship is to bring the donor ever closer to a full and complete understanding of theorganization so that their giving not only continues but increases over time. As landtrusts, we encourage and cultivate the principles of good stewardship of the land; asorganizations, we could apply that same nurturing approach to donor stewardship.Strategic marketing and communications activities are key to increasing yourorganization’s profile and visibility in the community. The more visible and recognizableyour organization is, the more likely you are to attract donors to your cause. There aremany tools available to support the fundraising initiatives, especially any that positionthe organization as one of choice for donors. Communications initiatives includedeveloping key messages, logo and corporate colours, advertising, websites, pamphletsand brochures, special publications, and public displays.Alberta Land Trust Alliance 3January 2011
  6. 6. Fund Development GuideMany terms refer to and describe the philanthropic sector: voluntary, nonprofit,independent, third, charitable, etc. The lack of consensus among charitableorganizations about references to the sector poses a problem. Many Canadians knowvery little about the sector, so the lack of a common language that describes the workcan create confusion. Furthermore, people react strongly to language. Charity, forexample, has a negative connotation in some circles. Other labels may help or hinderpositioning in the philanthropic marketplace.Yet Canada’s charitable sector has huge economic power. Organizations like yoursgenerate billions in revenue and control hundreds of billions of dollars in assets. Thesector is about 7% of Canada’s GDP and larger than several provincial economies andsome industry sectors. Charities employ about two million people and engage morethan 12 million in providing a billion hours of volunteer activity.Small charities, with revenue under $125,000 annually, make up about 40% ofcharitable organizations and account for 5% of funds raised. Medium-sized charities,with revenue between $125,000 and $1.5 million annually, make up some 45% of thecharitable landscape and draw 25% of funds raised. Large charities, with revenue over$1.5 million annually, are about 15% of Canada’s charities and bring in 70% of fundsraised.Alberta Land Trust Alliance 4January 2011
  7. 7. Fund Development GuideThe type of charity and its size in the philanthropic marketplace has an impact onfundraising among individuals, the most dominant source of donations.Alberta Land Trust Alliance 5January 2011
  8. 8. Fund Development GuideThe federal government is the largest contributor to annual revenue. Governmenttransfers and grants can be between 40% and over 90% of a charity’s total revenue,depending on the service the organization provides.Individuals consistently give 75% of all charitable donations. Companies andfoundations account for the remaining 25% of gift support, split roughly 12% forfoundations and 13% for companies.The average age of a donor in Canada is between 45 and 64. Their average donation isabout $400, a figure that drops to about $370 in people under age 45 and rises to about$570 in individuals older than 64.In getting to know donors, studies point to several barriers to giving. The two mostcommon reasons for not giving are personal and organizational, meaning donors mostoften cite objections related to their personal circumstances and beliefs, and will moreoften find reasons not to give based on their perceptions of the charity.Religion continues to play an important role in giving. Those who claim to be active intheir church are more likely to give, are more generous than the average, and are morelikely to volunteer.Alberta Land Trust Alliance 6January 2011
  9. 9. Fund Development GuideAbout 12 million Canadians give more than two billion hours in volunteer service.According to a 2007 study, there were 1,445,000 million volunteers in Alberta,averaging 172 volunteer hours per Albertan. Alberta’s volunteer rate increased from48% in 2004 to 52% in 2007, higher than the Canadian average of 48%.Women are more likely to volunteer than men. Men volunteer less frequently but donatemore hours. The highest volunteer rates are among the youth and the most hours givenare by seniors. The most likely organizations in which to find volunteers are in sportsand recreation, and the most likely jobs they are to perform are organizing andsupervising. More often than not, they have volunteered because they were asked.A change in organized volunteerism is emerging, known as “civic engagement.” It canbe defined as individual or collective actions that both address issues of public concernand provide help without the organizing assistance of a charity. This “help” may includeactivities such as cleaning, cooking, gardening, maintenance, painting, shoveling, carrepair, health-related and personal care, visiting, babysitting, shopping and transporting.The future of government and foundation funding is unsure. There is a sense that,regardless of government surplus, charities will never again see the government fundinglevels of the 1980s and 1990s. This forces organizations to be more self-sustaining,creative and innovative, incorporate sound business practices appropriate for anonprofit organization, and become increasingly accountable and transparent to privatesector funders.There is no more entitlement for charities and probably more scrutiny of anorganization’s activities. The days of unquestioning respect and awe for charities areover and increasing regulation has become a fact. All levels of government (globally)are scrutinizing the philanthropic sector. Legislative and regulatory bodies regularlydebate public policy and are taking more action on social issues than ever before.Community-based organizations provide the public with benchmarks by which to gaugecharities. The media is taking an ever-vigilant stand on issues around the managementof charitable activity. Charities need to cope with both the scrutiny and the outcome.There is an increasing focus on securing very large gifts in order to ensure campaignsuccess. These are what we call Major Gifts. While the definition of a major gift will bedifferent for every organization, all organizations will calculate a major gift much thesame way: by first evaluating all of the gift amounts received, from smallest to largest,Alberta Land Trust Alliance 7January 2011
  10. 10. Fund Development Guidethen comparing those amounts to the volume of gifts. The evolution of Major Giftprograms that focus on individual giving have redefined strategies and tacticsorganizations might take to raise funds.Donors are receiving more requests than ever, resulting in more focused giving asdonors move from cause to cause. Therefore, strategic cultivation and long-termstewardship are required components of fund development plans.Corporate gifts are flattening and sponsorships are increasing. Corporate communityinvestment programs are focused and strategically aligned with a company’s businessinterests. Charities must learn to manage these new relationships.Fund Development activities must work in concert with an organization’s other businessactivities. Fundraising can no longer be a “sidecar” to the organization’s programs andservices. It must be integrated with mission and vision.Visible and strong leadership is a key requirement for successful fundraising. The directinvolvement of senior volunteers and staff to provide credibility and validate theorganization’s funding needs is critical. And the donor public expects leadershipinvolvement in fundraising as planners and askers.The professional, personalized solicitation of individuals is becoming as necessary asthe approach of companies and foundations. All three of the major donor groups areadopting new methods of evaluating charitable activity and all have access toinformation beyond what the charity is providing online or through print publications. Theimpression a member of the community has about a charity now gets transmitted andcommunicated in dozens of ways that the charity cannot control.Alberta Land Trust Alliance 8January 2011
  11. 11. Fund Development GuideThe Case for Support does two things: It is a written document that answers all of the reasons why an organization both needs and merits financial support, usually by outlining the organization’s programs, current needs and plans. It is an expression of the cause as a community requirement, a clear and compelling statement of all of the reasons why anyone should consider making an investment in the organization and the cause it represents.The Case must answer some overarching and compelling questions. These areprobably the most important questions you can answer, so they deserve attention at thehighest leadership level.In a Board meeting, ask: Who are we and why do we exist? What is distinctive about us? What is it that we need to accomplish and how do we intend to get there? How will we hold ourselves accountable?The Case for Support must convince a courtroom of skeptics, so it has several specificpurposes: It clearly communicates the organization’s mission, vision, goals and objectives. It explains current programs and services and give examples of their positive results and impact in the community. It describes how new programs will further enrich and benefit the lives of many. It inspires and motivates donors, volunteers and the community to continue to support programs and the cause.Alberta Land Trust Alliance 9January 2011
  12. 12. Fund Development GuideThe Case for Support is a written communications tool. It should appeal both to thehead and to the heart of the prospective donor, so the tone and calibre of writing shouldaccomplish several things: Inform, inspire and excite potential donors Uplift and motivate; appeal to the philanthropy of the donor Incite to action and involvement Instill urgency Invite support, interest and dedicationThe Case may be written in various formats, and even the simplest must have a visualappeal. A simple format might have the following section headings: Mission, Vision, Values Goals & Objectives Programs & Services, Statement of Needs Staffing & Governance Facilities, Finances, EvaluationOrganizations will approach writing the Case for Support from different perspectives, butthe critical components are as follows: To identify, validate and document needs. To outline programs and strategies to meet needs. To establish competence of the organization and its people. To explain who will benefit. To identify necessary resources. To explain why they should and how donors can give. To think about any unasked questions.Alberta Land Trust Alliance 10January 2011
  13. 13. Fund Development Guide Undefined purpose, vague plans Overstated emotionalism, pleading Misunderstanding what motivates donors Unsubstantiated, grand claims To obtain consensus, rally leadership. To recruit volunteer leadership. To test the market. To support tool in asking for gifts. To tell the story. To build fundraising materials.Case Statements are a special version of the Case for Support. They are written tofocus attention on a program or service rather than the entire organization.A Case Statement tells the organization’s story to specific constituencies or donors.They present arguments for specific needs and are quickly converted to a proposal for aprospective donor.A Case Statement includes notes on overall fundraising goals and explanation of howfunds will be used. It outlines how successful fundraising strengthens the organization,presents a vision for the future and, above all, provides an invitation for the donor togive. Include an Ask. Write an Introduction. State the problem that needs to be addressed. Detail critical response or solution. Describe impact and what it means to the donor. Include updates on the progress/status of the campaign. Include relevant and helpful attachments.Alberta Land Trust Alliance 11January 2011
  14. 14. Fund Development Guide Gather as much information as possible and respond to the following areas. Don’t worry that you are unable to find lengthy or meaty responses, but do answer each of the points to the best of your ability. Fill in gaps through discussion with fellow Board and Committee members and other volunteers.1. What are you trying to accomplish and how do you know it’s necessary?2. Identify your specific needs. (Who? How? With What?)3. What programs and strategies do you imagine will meet these needs?4. Document the competence of the organization to reach its goals.5. Explain who will benefit from services that will be made possible.6. Identify all of the resources required to fund all programs and services.7. Explain why a prospective donor should give.8. Explain how a prospective donor can give.9. Anticipate and respond to any unasked questions in the prospect’s mind.10. Capture any questions you want answered as a potential donor.Alberta Land Trust Alliance 12January 2011
  15. 15. Fund Development GuideEvery organization, regardless of size, must engage in the continual identification ofpotential donors and have some capacity to record information about the people,companies and other supporters:Serious fundraising is based on sound relationships between donors and land trusts.The process for identifying prospects is actually quite critical to building theserelationships.Identifying and establishing a relationship with a potential donor is the first step.Next is maintaining the relationship through dialogue or conversation that is meant toalign the potential donor’s interests with those of the land trust. The more tightly this canbe done, the more likely the potential donor will make a significant investment in theland trust—exactly what you want to happen.Over time, and with continuing involvement, relationships with donors deepen and canbe expanded so that donors not only help fund major projects but are also inclined tosupport the operating needs of the trust.With their deepening involvement, donors are often more inclined to help theorganization identify additional potential donors and at gift levels that are close to theirexperience.Alberta Land Trust Alliance 13January 2011
  16. 16. Fund Development GuideSome organizations may already be in a position to formalize the identification ofprospective donors and the ongoing research that is part of the process. You may havealready identified several donors capable of making a large investment in theorganization. They’re either current (or recently past) donors, are visible and vocal inyour community, or have identified themselves as having an affinity for what land trustsare trying to achieve.With very little sleuthing and some well-conducted identification exercises, leaders andothers can expand this list of potential donors beyond the “usual suspects.”The trick is to get past the list of already-known individuals, companies and otherfunders to probe for others who share similar values or perspectives. Often, these arepeople you or someone you are close to already know. It’s how you start.Brainstorming with others is a terrific way to gain information about prospective donors.You can share personal contacts, examine participation records and bring in publiclyavailable information, involve peers or advisors and other experts.Once the information is gathered, the next task is to organize your research so that it’suseful to the land trust, its staff (if any), volunteers and leaders. The best prospectmanagement tools strive for simplicity; donors’ records must be accessible andorganized so that decisions can be made and action taken whether the trust wants tosolicit a single individual or groups of potential donors with something in common.Be determined to build some form of thorough but realistic research to your prospectidentification work. Alberta’s land trusts vary in their volunteer or staff capacity. Someare able to engage in very formal research activities and others will operate on a lesserscale. Once the commitment is made, though, it is critical that it continue. Collectinginformation about prospective donors is a cumulative process. This is the information-gathering that puts the jigsaw puzzle together so that your organization can make itsbest and most effective “ask.” It is imperative that a clearly articulated donor privacyand confidentiality policy be in place and followed implicitly.Alberta Land Trust Alliance 14January 2011
  17. 17. Fund Development GuideRecognize that the organization, its purpose and its projects are worth funding and thatthere is a donor lurking in the database of suspects and prospects, or in the back ofsomeone’s mind, just waiting for the chance.There are at least three areas land trust leaders should spend time thinking about:1. What it is about the organization that potential donors would fund.2. What the organization currently does that donors could fund.3. What the organization wants to accomplish in the future that donors might want to fund.With this information in hand, organizations canactually map out projects to prospects. You can relatemost closely those projects for which you needfunding to those prospective donors who are most intune with the organization’s needs. In fact, you willbegin looking at the problem of fundraising from theperspective of your supporters.Often overlooked, involving prospective donors is part of the process of building donorsupport: Yes, you can ask prospective donors for information about themselves that will help you define how best to involve them. Yes, you can work with prospective donors (individuals and groups) to link them with projects they are most likely to fund. Yes, you can achieve your greatest vision for your organization by asking very generous people to help you accomplish something really meaningful.Alberta Land Trust Alliance 15January 2011
  18. 18. Fund Development GuideResearch and prospect identification requires organizations to operate at the highestlevel when it comes to how information is handled. We are all bound by confidentialitylaws, in particular the Freedom of Information and the Protection of Privacy Act (FOIP),and Personal Information Protection and Electronic Documents Act (PIPEDA).Additionally, donors bring their own set of standards, codes and guidelines wheninteracting with an organization. They are very critical of organizations that don’t appearto operate in a highly ethical manner when it comes to the handling and communicationof information.Organizations must understand the very critical need to protect sensitive information.Information is the power to help very generous people do very generous things. Yourresearch needs to capture some specific information about prospective donors as wellas build the file on your current donors. For example: Their connection to your organization: How long they’ve been supporting the organization. Their level of engagement with what you are/do, with what you are currently doing, and with what you hope to achieve in the future. Their positive or negative experiences with you: Specifically, what you have done about it. Personal relationships with volunteers and staff. Gift/sponsorship information: How much they have given in total, what their first gift was, what their last gift was. For what purpose their giving was used. Demographic information: Their age, marital status, children/grandchildren. Notes on what they have told you about their life experience. Contact information: Name, address, telephone, cellular. Preferred method of communication, alternate addresses if necessary. Philanthropic interests, likes & dislikes: Known information about what else they support in the community. What they are known not to support. The hard stuff: Source of wealth, income and cash flow, type of assets. Type of business. Attitude toward recognition.Alberta Land Trust Alliance 16January 2011
  19. 19. Fund Development GuideThere is online database management software available for purchase to assist you: The Silent Partner – Fundraising Software http://www.thesilentpartner.net/ Giftworks Fundraising Software http://www.missionresearch.com/index.html Charity Master http://charitymaster.com/ @Ease http://www.batschgroup.com/Putting it off until there’s time means it will never be done. There is no “right” time for theorganization to pay attention to increasing the pool of prospective donors or cultivatinggreater interest among current donors. These are the individuals, companies,foundations and community groups that could—if given the chance—support yourorganization.Don’t expect part-time staff or inexperienced volunteers to understand what constitutes“correct” information. This means that your information-gathering activities must becarefully defined. You may want to use some or all of the areas identified above buttailored to your organization’s needs. This also means that you will need some generalpolicies and procedures to safeguard the information you are collecting, includingdetails on who has access to the information and for what purpose.Of course, the objective of prospect identification, information gathering and research isputting the organization’s representatives in the best position to ask for support.Sending cultivation teams or gift solicitors out with incorrect information is a disaster.Finally, research needs to be appropriate. Although trivia is interesting, trying to discovereverything about everybody is not the best use of time and resources. To be effective,organizations today must be very focused on acquiring information that will best lead tothe donor’s involvement and investment.Prospecting, research and information gathering must lead to gift solicitation throughsome form of fundraising activity.Your organization can elect to solicit support from groups of people using a variety ofmethods. A few of these methods include: Special events Direct mail Telephone campaigns Gaming Service Clubs (i.e. Kinsmen, Rotary)Alberta Land Trust Alliance 17January 2011
  20. 20. Fund Development Guide Coin Cans Online Giving Planned Giving (i.e. Bequests, Securities) Merchandise Sales Pledge Events Social Marketing tools (i.e. Facebook) Cellular text donations…and many more.Knowing something about these groups of people, especially if they have something incommon (age, location, background) can help determine what kind of event is launchedor what letter copy might be used to elicit the greatest amount of support.Your organization can choose to solicit individuals and their families, companies andfoundations. As well as the information above, you will want to know something abouttheir philanthropic interests, their geographic scope, any conditions to giving, or how todeliver the proposal.The most effective fundraising is done face-to-face. Success is enhanced when youhave done your homework; when the organization is making the best use of itsvolunteer or staff strengths; when it knows something about how the prospective donorwill react; when it has involved the prospective donor in your programs and services.Alberta Land Trust Alliance 18January 2011
  21. 21. Fund Development GuideIn his book, Face to Face: How to get Bigger Donations from Very Generous People,Canadian fundraiser, Ken Wyman, uses the following exercise to help bring out thenames of potential donors. These are categories of people you actually know who mightbe donors. This page isn’t a complete list, just a memory aid. Look for one or morenames in each group and write them down. Say them out loud with your family andfriends —you might spark an idea for someone else.Alberta Land Trust Alliance 19January 2011
  22. 22. Fund Development GuideThis worksheet is adapted from Ken Wyman’s book and is part of the “Webbing”exercise, which shows how groups of people are interconnected. You can use thefollowing sheet as a tool to gather information about potential donors from volunteersand others.Alberta Land Trust Alliance 20January 2011
  23. 23. Fund Development GuideOnce identified, you will need to find ways to involve prospective donors in theorganization so that, eventually, they can become donors.Alberta Land Trust Alliance 21January 2011
  24. 24. Fund Development GuideThis outlines some of the major steps leading to a gift. Steps are date sensitiveFOR EACH PROSPECT to ensure progress is being made toward solicitationand closing the gift agreement. Initial contact – anything that initiates a telephone call, referral, introduction, or that creates a meeting. Research – do detailed research on the prospective donor, update or create a solicitation file. Write a value proposition for the prospect (why they should give). Address competing philanthropic interests, other known requests and a rationale for solicitation. Determine “right” contact or series of contacts who can champion the organization with the prospect. Identify who will authorize a major gift. Deliver Case for Support and take any steps that give the prospect information with which they can build their file. First pulse point – check research against contact’s interests. Adjust if necessary. Identify the solicitation team. Confirm ability to deliver Case materials & proposals, time availability, training needs. Deliver information requested by the prospect – case-specific information to increase awareness and focus, tailored to the prospect and addressing philanthropic interests. Connect our campaign team members and prospect’s representatives. Site visits and information receptions – tours, invite to any information sessions and ensure attendance.Alberta Land Trust Alliance 22January 2011
  25. 25. Fund Development Guide Testimonial support – obtain outside and independent testimonials from current partners, sponsors and supporters known to the prospect. Highlight our legitimacy and the urgency of Case for Support. First meeting – focus on key areas of interest, hear prospect’s ideas, and listen for opportunities. Second meeting – verbal and written response to information received at first meeting; check accuracy of information and messages the prospect may be sending. Senior level contact – arrange several peer-to-peer contacts. Third meeting – present proposal, set timetable for acceptance. Manage proposal response. Make necessary adjustments, amendments or interventions. Gift agreement – written record of gift or partnership in the donor’s file. Research updated – send confirmation to donor. Stewardship plan written covering communication and recognition.Alberta Land Trust Alliance 23January 2011
  26. 26. Fund Development GuideYour Strategic Fund Development Plan is a written summary of your fundraisinggoals and an outline of which fundraising activities you will use to achieve yourobjectives within a given period of time. It is the result of a thorough review ofyour organization’s mission and vision, a look at the environment in which theland trust operates and, finally, an agreed upon course of action by the trust’sleadership.Second is setting your fundraising goals and determining which fundraisingactivities to engage in.Step One: Assemble all of the information you will need to include in the Plan.Much of this is either readily available or may require a few special meetings orconversations to acquire. Gather as much as you are able. The Plan is a livingdocument that will be updated from time to time to reflect the organization’sgrowth and changes.At a minimum, you will want to include: A copy of your most recent audited (or unaudited) financial statement Your current year operating budget A list of approved needs and financial goals Your Case for Support Mission, vision and values statements A very brief history of the organizationAlberta Land Trust Alliance 24January 2011
  27. 27. Fund Development GuideStep Two: Conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats)analysis (or other method) to gather information about the environment in whichthe organization operates. A SWOT analysis is useful because of its simplicity.Involve those within the organization and a few from outside (donors perhaps) ina discussion about the organization’s perceived strengths, its internalweaknesses, what opportunities might move the organization forward and whatthreats keep it from fulfilling its mission.Step Three: Write the Plan. Someone in the organization should be assignedthe job of pulling all the pieces together and drafting the document.The Plan should be circulated internally for input (not for critique or editing) bythose who may have additional or more current information. With the necessarypieces in place, one person should be assigned the job of finalizing the Plan forendorsement and approval.This is a living document, so the Plan can either include the following informationif it is available or can be added at a later date: Campaign themes Target supporters—individuals, companies, foundations, community groups, governments Corporate sponsors and strategic partnerships Community leadership Donor recognition—policies & proceduresStep Four: Get Board approval and implement the Plan! This is actually quitenecessary and should be done deliberately. The Board is the organization’shighest governing body and needs to authorize the Development Plan, endorsingits objectives and giving it legitimacy.Alberta Land Trust Alliance 25January 2011
  28. 28. Fund Development GuideIn fundraising, donors expect Boards to take a leadership position on resourcedevelopment. The Development Plan proves the organization has grappled withthe issues and is moving forward on achieving its goals.Organizations must determine what the money’s for—operating income, capitalimprovement, endowment building, special program funding. You can viewfundraising for these purposes in two ways:Easiest is program costs; identifying all of your organization’s projects,programs and services and their total dollar cost over the course of the year.Harder to identify, and most often neglected in fundraising plans, are operatingcosts. Harder, in the sense that there are sometimes portions of staff andvolunteer time to account for on programs and services. Most often neglected, inthe belief that donors don’t want to fund operating costs.Like any other organization, nonprofits really only have one cost—what it costs todeliver programs and services. These costs are for both program and materialneeds as well as the operating costs that make delivering programs and servicespossible.It’s the sum of all the organization’s requirements. For example, the goal is toraise $100,000 in year 2010 to ensure the Western Creek Land Trust remainsworld-class and accessible for all. The Fund Development goal might be:If asked what’s in the Equipment line item, the organization would be justified inexplaining a cost for maintenance. For Programs, delivery might involve the helpof part-time staff, or that one of the key programs is delivered indoors onmidwinter evenings and requires lighting and heat. The Bursary and EndowmentAlberta Land Trust Alliance 26January 2011
  29. 29. Fund Development Guidefunds might also include professional fees to establish the fund or manage theportfolio. Every program or service offered by a nonprofit organization includesoperating costs. Tours don’t happen on their own; someone needs to organizethem. Land purchases aren’t done on a handshake. Conserved lands need to bestewarded.The organization needs to meet or exceed its financial goal through a diversifiedfundraising program without depending on any one source of revenue. The FundDevelopment program therefore looks to a variety of sources and attempts toanswer questions about what this support might look like.A Development program summary of sources might look like:A holistic approach to Fund Development treats all individual activities as part ofthe whole. This means all of your organization’s fundraising activities areinterconnected and integrated. The objective is achieving balance among thetypes of fundraising being done and the time, effort, and cost put into them.Alberta Land Trust Alliance 27January 2011
  30. 30. Fund Development GuideThere are three general categories of fundraising and each has a specificpurpose and can require or involve different types of donors. You will have a mixof these as part of your fundraising to provide donors multiple opportunities togive, and so you can select or emphasize the fundraising that is most productive.Annual giving programs run year-round, provide the organization with operatingincome either designated for a specific purpose or undesignated for theorganizations use. Types of fundraising may be direct mail, small grouppresentations, and special events. These are the primary fundraising methodsused to broaden support and upgrade gift levels among current donors.Each organization has a special project for which it requires funding—be itconstruction, renovation, special equipment, land acquisition or to build anendowment. These are the “major gift” programs, characterized as intensive,highly organized for a specific purpose, and carried out within a specified period.Planned giving is the organization’s future financial cushion. It’s the process ofdesigning charitable gifts so donors achieve their philanthropic objectives andmake the most of any tax and other financial benefits. These are gifts of assets,and the most often used in Canada are bequests and gifts of property. Unlikemany other charitable organizations, land trusts will make good use of this typeof giving.Alberta Land Trust Alliance 28January 2011
  31. 31. Fund Development GuideThe Fund Development Plan drives fundraising, as it is the platform on which tobuild the organization’s fundraising activities. However, the following are stillnecessary: Plans for each type of fundraising activity Case Statements for individual programs and services Lists of prospective donors An outline of how to communicate with potential donors Lists of potential fundraising volunteers A fundraising budgetYou will want to set goals and objectives for each type of fundraising. Somesimple measurements are the number of donors and donor renewals, how muchmoney needs to be raised and how much was actually raised, and which type offundraising was most effective.Some additional areas to focus on that are important when evaluating fundraisingactivity and determining whether to continue, abandon or change a particularmethod are as follows: Identify the people involved – whether these are staff members or volunteers. List them and note their individual responsibilities. Establish a timeline – each fundraising “campaign” has its own unique timetable by which you can gauge its performance. Chart a direction and the steps that need to be taken for each fundraising activity. Communicate this among those involved. Continue to involve your various constituencies. The more buy-in you have, the easier it is to ask for money and the programs you choose will reflect donor interests. Set measurable goals and strategies. In addition to “soft” measures, make sure you are reaching your “hard” targets. Estimate costs and income projections and evaluate these indicators at least twice annually. Make sure fundraising programs support all of the organization’s needs and are not too focused on one specific area.Alberta Land Trust Alliance 29January 2011
  32. 32. Fund Development Guide Case for SupportIn ever growing numbers, Albertans are recognizing the value of our uniquelandscapes and the need to conserve the places we cherish. Landowners have adeep connection to their land and know the gifts that conserved lands providecommunities – clean air and water, healthy foods, wildlife habitat and scenicbeauty. All too often these special places disappear forever because ofdevelopment and urban sprawl. Albertans who want to conserve their land canturn to land trusts – non profit organizations that work with landowners interestedin protecting open space.The Alberta Land Trust Alliance (ALTA) is a registered charity formed in 2006with a mandate to help conserve and protect Alberta`s environmental heritageand landscapes of natural and cultural significance. The organization aims tohelp maintain biodiversity and ecological integrity of those landscapes for publicbenefit.VISIONAlbertas future landscapes are rich in biodiversity and have strong ecologicalintegrity.MISSIONTo represent the land trust community and build capacity in land trusts toconserve diverse and ecologically important landscapes in Alberta.“If we want our children to enjoy the same quality of life that current generations have, we need a new land-use system… Clean water and air, healthy habitat and riparian areas, abundant wild species and fisheries are all ‘public goods’ that Albertans enjoy and value.” Land-use Framework, Government of AlbertaHISTORYIn 2006, Alberta Environment brought together Alberta’s land trust community toexplore ways to enhance the use and delivery of conservation easements in theprovince. At that time, Alberta Environment was responsible for conservationeasement legislation and recognized that land trusts played an important role insecuring conservation easements on private land. Attendees identified a numberof priority issues including a recommendation for coordination among Alberta’sland trusts. In response to this, Alberta Environment announced $300,000 inAlberta Land Trust Alliance 30January 2011
  33. 33. Fund Development Guideprovincial funding and secondment of a staff person over three years for thecreation and facilitation of the Alberta Land Trust Alliance (ALTA).Now in its fourth year of operation, ALTA has recently received charitable status,and as such, is reaching out to a wider range of potential stakeholders. Operatingcosts remain very low, thanks to the generous in-kind contribution of office spaceby the Alberta Water Council. The organization is well positioned to make greatstrides in facilitating future land conservation in Alberta. More than one third of Alberta’s land is privately owned and managed. Alberta’s landowners arefaced with competing land pressures and many are seeking ways to conserve their lands through personal action. Alberta’s land trusts work directly with these private landowners and build partnerships for responsible stewardship of private lands.ACCOMPLISHMENTSThere are more than 1000 conserved properties in our province, representingmore than 150,000 acres, which are owned by land trusts and others.There are more than 1500 conservation easements in Alberta representing morethan 115,000 acres. 50 percent of these conservation easements werecompleted by land trusts. Source - Public and Private Contributions to Conservation, Olaf Jensen, Environment Canada, 2009ALTA’S PRIORITIESThe land trust movement has an urgent mandate to secure lands forconservation given the pressures of development, urban sprawl, climate change,intergenerational land transfer and biodiversity.ALTA does not intend to own or hold conservation lands or conservationeasements but will provide service and support to those that undertake theseactivities. ALTA will continue to serve as a resource to government as policiesare developed and will become a trusted source of information for industry,agriculture and community stakeholders.Outcomes of major actions that ALTA will be undertaking in the next 36 monthsinclude: 1. Increasing public awareness of the value of land conservation and land stewardship; 2. Advancing environmentally sound stewardship among landowners and increasing their understanding of environmental issues pertaining to specific areas of land in Alberta; 3. Educating potential stakeholders about the role that local land trusts can play in preserving land in perpetuity; 4. Fostering relationships and building linkages within the land trust community in order to advance the work of local land trusts;Alberta Land Trust Alliance 31January 2011
  34. 34. Fund Development Guide 5. Working with all levels of government to influence positive land conservation policies; 6. Increasing the number of acres of conserved lands in Alberta by building capacity in local land trusts; 7. Identifying where gaps may exist in specific areas of the province and assisting with the formation of new land trusts at the grassroots level. 8. Speaking as a unified voice on behalf of our member organizations. With increased awareness of land trusts and more education on the value of conservation, there will be increased donations of land – the best legacy gift to the environment sector and to all Albertans.ALTA MEMBERSALTA Members adhere to a national set of standards and practices regarding thebroad spectrum of land trust activities.The organization serves 17 member organizations including 11 land trusts.Member Land Trusts Other Member StakeholdersAlberta Conservation Association Alberta Environmental Law CentreAlberta Fish & Game Association Beaver Hills InitiativeCrooked Creek Conservancy Society of Athabasca City of EdmontonDucks Unlimited Canada Miistakis Institute for the RockiesEdmonton & Area Land Trust Rockyview CountyFoothills Land Trust Special Areas BoardLand Stewardship Centre of CanadaNature Conservancy of CanadaSouthern Alberta Land Trust SocietyWestern Sky Land TrustWild Elk FederationALTA also encourages involvement by individuals, businesses and governmentagencies as associate members.ALTA is positioned in the community to work across political boundaries,assisting local land trusts and empowering landowners to take responsibleaction. “We would like to know how our land can be kept in its natural state so that future generations of Albertans can enjoy it, and we look to the Alliance to give us information in this respect.” Anne and John Packer, Landowners - Bruderheim, AlbertaFOR THE LOVE OF OUR LANDAs stated in Albertas Land-use Framework (http://landuse.alberta.ca/) - Albertasprosperity has created opportunities for our economy and people, but it has alsocreated significant challenges for Albertas landscapes. Industrial and agriculturalactivity, municipal development, infrastructure, recreation and conservationinterests often compete to use the same piece of land. The competition betweenAlberta Land Trust Alliance 32January 2011
  35. 35. Fund Development Guideuser groups creates conflict, and often puts stress on the finite capacity of ourland, water and habitat.Alberta’s land base is approximately 158 million acres (64 million hectares) - it isthe sixth largest province in Canada. The population of Alberta is 3.63 million,GDP is $258 billion, and the province leads the nation in real economic growthwhich, from 2003 to 2008, was 3.8 per cent (Alberta Government, 2009).Agricultural production uses 31.7 per cent of the land in Alberta. An estimated19.5 percent of this agricultural production takes the form of improved farmlandand cultivated crops. Notwithstanding the contributions of agriculture to theeconomy - the exploration, extraction, processing and refinement of fossil fuels isthe dominant component of the provincial economy.To date, there are nearly 140,000 oil and gas wells that have been drilled inAlberta; 10,672 conventional and 5,426 oil sands wells were drilled in 2008 alone– of these, 3,225 oil wells and 10,062 gas wells were completed (brought intoproduction) and an additional 1,737 were dry and serviced. There are over 600drilling rigs active or available in Alberta every day (Alberta Energy, 2009).Alberta is a resource based economy. Agriculture, forestry, conventional oil andgas development, and oil sands (bitumen) extraction are the primary drivers ofboth the economy and habitat change and it is within this busy landscape thatprivate and public agencies are striving to meet a number of conservationobjectives.In 1987 the World Commission on Environment and Development (theBrundtland Commission) published its report, Our Common Future, in which itwas suggested that 12 per cent of land in any jurisdiction should be protected. Inresponse, the Government of Alberta, through its Special Places Program,increased protected areas from 9.5 to 12.2 per cent between 1995 and 2002.The provincial government mandated that these protected areas berepresentative of the six natural regions of the province (Dyson, 1996).At present, lands designated as parks under federal or provincial legislation ormanaged by private organizations that have a mandate for conservationcomprise 12.7 per cent of the provincial land base. While this is anaccomplishment, it is clear from even a casual analysis that these protectedlands are not distributed evenly across Alberta’s nineteen ecological regions andsix ecological zones. Private land is often the most threatened with biodiversityloss due to the pressures of development. Open spaces are shrinking.Preserving natural and public goods depend upon our ability to preserve privateand public lands.Recent analysis suggests that 20 to 30 percent is a more appropriate target for abiologically viable protected areas network (Shaffer, 2002). Source - Public and Private Contributions to Conservation, Environment Canada, 2009Alberta Land Trust Alliance 33January 2011
  36. 36. Fund Development GuideALTA will work to bring government, industry and private landowners together toensure intergenerational responsibility is a key consideration in all forms ofhuman land use.As further stated in the Land-use Framework - Albertas lands should bemanaged to ensure healthy ecosystems. The Alberta Land Trust Alliance (ALTA)believes that Albertans must accept the responsibility of stewarding our land sothat they pass lands on to future generations in as good or better condition thanbefore.“Cumulative effects management recognizes that our watersheds, airsheds and landscapes have a finite carrying capacity. Our future generation will depend on how well we manage activities so that they do not exceed the carrying capacity of our environment.” Land-use Framework, Government of AlbertaUltimately, ALTA will build capacity in local land trusts to enable theseorganizations to conserve more land. Through our efforts, communities willlearn more about conservation and ways to protect private land. Once betterinformed, landowners can consider their own personal options and how theirdecisions will impact Albertas natural areas. Individual and collaborative actionwill result in more acres of conserved lands - reducing biodiversity loss,protecting wildlife and plants, and protecting and improvingthe habitat where they live.BENEFITS OF CONSERVING LANDSaving Limited ResourcesOur air and water are limited resources. The tree canopy and vegetation serve ascritical filters for our air. Wetlands that border our rivers, lakes and streams filterpollution before it reaches our drinking water. If we do not remove the pollutantsthat our society puts into the air and water, we consume them ourselves.Boosting Our EconomyIn addition to health and food benefits, conserving land increases property valuesnear greenbelts, saves tax dollars by encouraging more efficient development,and reduces the need for expensive water filtration facilities. Study after studyhas demonstrated the tremendous economic benefits of land conservation:A Return on Investment: The Economic Value of Colorado’s Conservation Easements, 2008,http://www.tpl.org/content_documents/Final%20report%20ecosystem%20services.pdfReport – Managing Growth in New Hampshire, 2005,http://www.tpl.org/content_documents/nh_growthExecutiveSummary.pdfAlberta Land Trust Alliance 34January 2011
  37. 37. Fund Development GuideWhat is a land trust?A land trust is a non profit organization that actively works to conserve land byundertaking or assisting in land or conservation easement acquisition, or by itsstewardship of such land or easements. Land trusts (sometimes called landconservancies) have existed in North America since 1891. However, it is only inthe last two decades that the land trust movement has really taken hold as one ofthe fastest growing and most successful conservation movements in our history.2Land trusts conserve all different types of land. Some protect only farmland orranchland, while others conserve forests, mountains, prairies, deserts, wildlifehabitat, cultural and heritage resources such as archaeological sites orbattlefields, urban natural areas, scenic corridors, wetlands or waterways. It is upto each organization to decide what type of land to protect according to itsmission. Some parcels protected by land trusts have no, or extremely limitedpublic access, for the protection of sensitive wildlife, or to allow recovery ofdamaged ecosystems. Many protected areas remain under private ownership,which limits access as well. However, in many cases, land trusts work toeventually open up the land in a limited way to the public for recreation in theform of hunting, hiking, camping, wildlife observation, or other responsiblerecreation activities. Some land may also used for sustainable agriculture,ranching or logging. Source – www.landtrustalliance.org 2005 National Land trust Consensus (2006), Land Trust AllianceHow is land conserved by land trusts?Land trusts have many options available to conserve land. The most commonoptions are the acquisition of fee simple interests in land and of conservationeasements.Fee SimpleA land trust can conserve land through an outright purchase or donation, in whichthe landowner sells or grants all rights, title and interest in the property to theland trust. The land trust maintains perpetual stewardship and managementresponsibility for the land. It owns the land and may grant conservationeasements on the land it owns to another conservation organization, agency ormunicipality.Conservation EasementA conservation easement is a legal agreement between a landowner and a landtrust or government agency that permanently limits uses of the land in order toprotect its conservation values. It allows the landowner to continue to own anduse the land, subject to the restrictions imposed by the conservation easement,and to sell it or pass it on to heirs. A landowner may sell a conservationeasement, but usually easements are donated. If the donation benefits the publicby permanently protecting important conservation resources and meets other2 2005 National Land Trust Consensus (2006), Land Trust AllianceAlberta Land Trust Alliance 35January 2011
  38. 38. Fund Development Guidefederal tax requirements, it can qualify as a tax-deductible charitable donation.The amount of the donation is the difference between the land’s value with theeasement and its value without the easement. Placing an easement on propertymay or may not result in property tax savings.Perhaps most importantly, a conservation easement can be essential for passingland on to the next generation. By removing the land’s development potential, theeasement lowers its market value, which in turn lowers estate tax. Whether theeasement is donated during life or by will, it can make a critical difference in theheirs’ ability to keep the land intact.Other Methods Conservation Offsets Transfer of Development Credits Conservation DirectivesLand trusts help your community: By helping individuals protect community resources that come from the land – water, food security, wildlife, and places for recreation and reflection; Promoting stronger local communities by giving citizens the knowledge and support they need to reach out and work with their neighbours to protect the local places they need and love; Serving as a part of a national community of land trust staff, volunteers, members and advocates committed to private land conservation across the Canada.Land trusts help preserve land for future generations, protect our food and watersupply, provide wildlife habitat, and strengthen communities.WHO MAKES UP THE LAND TRUST COMMUNITYThe land trust community includes private landowners, researchers andacademics, allied professionals (i.e. appraisers, lawyers and accountants),industry, government representatives from municipal, provincial and federaldepartments and the public.GET INVOLVEDYou can join the growing land trust movement and assist ALTA in achieving oururgent mandate by: Making a donation Funding an initiative Volunteering your time Sharing your expertiseAlberta Land Trust Alliance 36January 2011
  39. 39. Fund Development GuideContact us to learn more!Alberta Land Trust Alliance1400, 9915-108 StreetEdmonton, Alberta Canada T5K 2G8T: 780-644-7384F: 780-644-7385E: albertalandtrust@shaw.caCharitable Registration No. 85879 9893 RR0001www.landtrusts-alberta.caThere is nothing in which the birds differ more from man than the way in which they can build and yet leave a landscape as it was before. ~Robert Lynd, The Blue Lion and Other EssaysAlberta Land Trust Alliance 37January 2011