I need a fundraiser now!

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  • Individuals donated $229 billion in 2008. Arts received $13 billion in philanthropy representing a 6.4% decline. Individuals represent 31% of ALL income for arts organizations - only earned is more.
  • I need a fundraiser now!

    1. 1. I need a fundraiser now! September 10, 2010 MDW Consulting: Comprehensive development services for nonprofits .
    2. 2. Introductions <ul><ul><li>What you would like to learn? </li></ul></ul><ul><ul><li>What are your questions about hiring a fundraiser? </li></ul></ul><ul><ul><li>What’s your own experience with fundraising? </li></ul></ul>
    3. 3. What we will cover? <ul><li>Overview of Philanthropy Today </li></ul><ul><ul><li>Where does funding come from? </li></ul></ul><ul><ul><li>How does an organization fundraise? </li></ul></ul><ul><li>Portfolio View of Revenue </li></ul><ul><li>Volunteer and Staff Roles in Fundraising </li></ul><ul><li>Planning </li></ul><ul><li>Case Study </li></ul>
    4. 4. Sources of Philanthropy <ul><li>Americans gave $307.75 billion in 2009. Total giving, when adjusted for inflation, was down 5.7%, the largest drop since tracking began. Giving still totaled $307 billion! </li></ul><ul><li>Individual giving is 75% of total giving not including bequests. </li></ul><ul><li>Corporate giving increased 5.5% in 2009 to $14.1 billion. accounting for 4 percent of all charitable giving. </li></ul><ul><li>Foundations represent only 13% of giving or $38 billion - down 8.9%. </li></ul>
    5. 7. Divide & Conquer <ul><li>Divide your fundraising efforts using a mix of tools: </li></ul><ul><ul><li>Giving pyramid </li></ul></ul><ul><ul><li>Philanthropic Sectors </li></ul></ul><ul><ul><li>Cultivation continuum </li></ul></ul><ul><ul><li>Stages of Board Development </li></ul></ul><ul><li>Identify areas for further growth </li></ul><ul><li>Create actionable and realistic framework for that area </li></ul><ul><li>Given that framework, what is the best staffing choice? </li></ul>
    6. 8. Analysis <ul><li>What is your organization’s current revenue mix? </li></ul><ul><li>How do you compare with peer organizations? </li></ul><ul><li>What has been it’s traditional strengths? </li></ul><ul><li>How active are the Board and volunteers in fundraising? </li></ul><ul><li>How did a previous experience turn out with fundraising staff or consultant? </li></ul>
    7. 9. Align with Mission <ul><li>Is the organization planning a major capital expansion in the future? </li></ul><ul><li>What can it do to build on current management and/or Board strengths? </li></ul><ul><li>How does fundraising and events enhance or detract from your mission? </li></ul>
    8. 10. Donor Pyramid Planned Gifts Capital Donor Project Donor Renewed Donor Newly Acquired Donor Patrons & Board Contacts Planned Giving Capital Campaigns Annual Fund Personal Solicitation Phone Solicitation <ul><li>Mass Solicitation </li></ul><ul><ul><li>Special Events </li></ul></ul><ul><ul><li>Direct Mail </li></ul></ul>
    9. 11. Prospect Migration Capacity Initial Relationship Education Solicitation Gift
    10. 12. Campaign Gifts Amount Raised Cost Donor Direct Mail Acquisition: Low revenue comprised of many small gifts. Renewals, Phonathons: Many donors, slight increase in gift sizes. Upgraded Gifts: Selected donors upgrade gift sizes through one-on-one contact . Major Gifts: Gift size increases; cultivation time increases; number of donors decreases Campaign Gifts: Very few donors, very large gifts Comparative Costs and Returns of Interdependent Fundraising Methods
    11. 13. Stages of Building a Philanthropic Board “ Giving is important.” “ I will give.” “ I will give again (annually).” “ I will be an ambassador… I will advocate the organization to others.” “ I will ask others to give.” “ I will ask others to become involved.” Ambassador Donor Advocate Volunteer
    12. 14. Analysis Plan Implement Evaluate Ideal for Consultant Ideal for Staff Ideal for Consultant Planning Stages
    13. 15. Consultant Outsource Staff Campaign Study Campaign Counsel Evaluation Grant Writing Interim Staffing Analysis & Planning Ongoing Board Development Donor Cultivation Gift Acknowledgement Corporate/Foundation Relations Small Events & Appeals Direct Mail Telemarketing Galas Fundraising Tactics
    14. 16. Board and Staff Relationship Staff: Transactional Fundraising Board: Relationship Fundraising
    15. 17. Cost Estimates by Activity Cost Spectrum High ($1.50) Medium Low ($.12) Acquisition Mailings Special Events Telemarketing Direct Mail (Existing Donors) Sponsorships Planned Giving Major Gifts Capital Campaigns
    16. 18. Cost Estimates by Staffing Model
    17. 19. Case Study <ul><ul><li>Break-up into groups of 4-5. </li></ul></ul><ul><ul><li>Discuss the case for 15 minutes. </li></ul></ul><ul><ul><li>Select leader to present your ideas. </li></ul></ul><ul><ul><li>Questions: </li></ul></ul><ul><ul><ul><li>How would you analyze the situation? </li></ul></ul></ul><ul><ul><ul><li>Would you hire a full-time fundraiser? If so, when? </li></ul></ul></ul><ul><ul><ul><li>How realistic are the financial goals? </li></ul></ul></ul><ul><ul><ul><li>What would you focus on? </li></ul></ul></ul>
    18. 20. Free Initial Consultation <ul><li>Receive a no-cost 45-minute consultation on any aspect of development - from capital campaigns to staffing. </li></ul><ul><li>Learn how you can overcome obstacles and improve your fundraising performance. This offer is transferable so feel free to forward it to a colleague. </li></ul>
    19. 21. Thank you!

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