The document provides an overview of strategies and best practices for arts organization boards to effectively develop funds and resources. It discusses developing a comprehensive development plan with goals, timelines, budgets and evaluations. The plan should analyze strengths/weaknesses and opportunities/threats while outlining specific fundraising strategies. Boards are responsible for oversight, participation and accountability, and members should be trained to personally fundraise and cultivate donors and community support through relationship-building.

1. Presented by Andrew Marietta, Regional Manager, New York Council of Nonprofits, Inc. www.nycon.org | 800.515.5012 | amarietta@nycon.org Fund Development for Your Arts Organization Board NYMACC | September 26, 2011

2. Learn the various fund & resource development duties of the Board & Development Committee responsibilities Learn the components of a development plan & how to formulate & implement strategies Explore strategies for communicating your impact Discuss ways to obtain buy-in from the Board Key Learning Objectives

3. Major Policy & Monitoring Functions Board Management and Development Personnel Oversight Finances/Fixed Assets Oversight Resource Development Stakeholder/Community Relations Programs: Quality Assurance, Evaluation & Continuous Improvement Planning for the Future

4. Major Policy & Monitoring Functions Board Management and Development Personnel Oversight Finances/Fixed Assets Oversight Resource Development Stakeholder/Community Relations Programs: Quality Assurance, Evaluation & Continuous Improvement Planning for the Future

5. Fund Development Responsibilities of an Effective Board Accountability Ethical Principles Oversight Participation

6. Accountability Awareness & compliance with the intent of federal, state & local laws regulating charitable solicitation Attorney General’s Office IRS Other Establish & exercise adequate controls over fundraising activities Accuracy, integrity & accountability in all solicitation activities, materials, representations, etc.

7. Ethical Principles Motivated by mission, merits & resource needs Respect for the privacy of donors Administrative & fundraising expenses should be fair, reasonable, documented & disclosed (reported on IRS Form 990)

8. Oversight Establish an appropriate governance structure Ensure development efforts meet the budgetary needs Ensure resources are available to maximize returns Approval of the annual development plan

9. Participation Personal contribution Involvement Identifying and cultivating resources Government relations Solicitation

10. Who’s on First? The Development Committee Prepares Development Plan for Board approval (with staff support if available) Models and encourages full Board involvement in implementation Monitors and reports progress Evaluates efforts Revises plan

11. Why Have a Plan? Challenges & replaces magical or wishful thinking Coordinates Board, fund raising & marketing efforts with the organizational strategic plan Gets “buy-in” from participants regarding: Goals Roles Priorities Accountability

12. Plan Benefits Helps to pace your annual efforts Great orientation tool for new Board Members & Committee Volunteers Creates understanding of everyone’s fund raising roles & responsibilities Is outcome-based & measurable which helps you learn & measure your success

13. Strategic Questions to ask What are the agency’s real needs? What are we raising money for? Would funds raised effect existing funding streams? Where have the resources come from in the past? What are our funding trends? Are the funding streams diversified? What would be the impact of a funding cut from any source? What are we good at?

14. What is a Development Plan? (or…taking the gamble out of fund development) A detailed plan that describes how you intend to secure donated resources. It includes: The case for support Fund Development environmental analysis Goals & Objectives Strategies Human resource needs Budget Timelines Accountability Evaluation

15. Developing Your Case for Support What do you need money for? How much do you need? Why would someone want to contribute? Benefits to clients Benefits to the donor Benefits to the community

16. Analysis of Fund Development Environment External Environment (Opportunities & Threats) Competitors Community awareness & relationships Perceptions of activities (quality & need) Economy

17. Analysis of Fund Development Environment (cont’d) Internal Environment (Strengths & Weaknesses) Evaluation of previous efforts Staffing capacity & support Financial management infrastructure & technology Fundraising software Budget available for development efforts Volunteers’ commitment to fundraising Marketing materials

18. Identify Your Fundraising Strategies On-line activity Special events Direct mail Radio, television or print ads Phone-a-thons Planned Giving/Bequests Face-to-face solicitation Other?

19. Each Strategy Serves a Purpose While it may not offer the greatest immediate financial return, it may: Establish credibility Generate positive public exposure for organization and increase public awareness Reach out to potential new donors “ Set the table” for future gifts Involve new volunteers--your best ambassadors in the community Raise the profile of your cause or mission

20. S pecific M easurable A ttainable R ealistic T imebound Take It One Step At A Time! Set SMART Goals!

21. Master Timeline Space out major events and asks Strategy Jan Feb Mar April May June Special Event x Direct Mail Campaign x Volunteers Recruited x x Follow-up Solicitation x Media Thrust x x Newsletters x

22. It takes money to raise money, but how much can you afford? Remember that time is money - if it takes time, there is a cost Even volunteer-driven fund raising efforts require adequate staffing, space & technology to support volunteers Remember to include all costs (direct or hidden): Staff time Space and technology needs Marketing & advertising Develop a Master Budget

23. Evaluating the Plan Review & fine-tune the plan annually Were costs reasonable compared to income? Were targets & outcomes realistic? Consider the non-financial benefits of each effort Are you moving toward your long-term goals? So How Did We Do?

24. Who Receives the Money? Source: Giving USA 2010

25. Source of 75% of charitable contributions Need for unrestricted dollars Reduced funding from government and foundations Builds a broad-based support Requires Board involvement and Builds LOCAL support Why Focus on the Individual?

26. Development is the process of building relationships Fundraising is setting up opportunities to actually ask for money 80% of the money you raise will come from 20% of the donors Lower income people give a greater percentage of their income than wealthier donors The #1 reason people don’t give is because no one asked! Key Concepts in Fundraising

27. Personal face to face ask by a known peer 50% Personal phone call by a known peer 30% Personal letter by a known peer 15% (on their stationery) Phone-a-thon (by a volunteer or paid caller) 10% Direct Mail 1-5% Special Events Least Effective Success Rate of Fund Raising Activities Based on Ratio of Time Invested to Financial Return

28. 2009 Online Giving Update… The average online gift in 2009 was $144.72. That represents a 5% decline from 2008 , but remains significantly higher than other fundraising channels.

29. Messages that Connect Is it right for your audience? Keep it Simple Make it memorable Unexpected Concrete Emotional, tapping into positive or negative feelings

30. The “New” Cultivation Process… Stop being a not-for-profit. Why do we define our selves in the negative? It makes no sense. Does your organization exist to ‘not make any money?’ Or, does it exist to save lives, change lives and impact lives . Connection to Impact Drives Potential for Income. Source: www.forimpact.org

31. Cultivate Plants… Relate to People… Old: The higher the ask the longer the “cultivation period.” New: The bigger connection to impact the better the partnership Old: Major gifts are infrequently asked for or given and require a personalized cultivation plan and solicitation. New: Partnership opportunities are presented when good partners present themselves. Both parties bring value to the table and help each other reach their goals. Old: Nonprofit “charities” ask for donations. Giving is the ‘right thing to do.’ New: Nonprofit businesses provide opportunities to invest in your community, and see the return for the people, region, cause you care about .

32. Share goals the organization pursues Personal connections with staff, board, clients or volunteers Personal gratitude toward the organization Involvement in the life of the organization Enlightened self-interest Being asked Joy Remember Why People Give

33. Case Study In Making It Simple: “In A Nutshell” “ The Soap Box and Toolbox for New York’s Nonprofits.” What? Why? How? Support Build Stronger Nonprofits Comprehensive Services Plan Community Engagement Collaboration Advocate Give Voice to All Education & Lobbying

34. What’s Your ‘Impact Statement’? Impact Statement WHAT WHY HOW

35. O.K. I Get It! Now How Do I Get My Board on Board? Get buy-in and establish champions on the Board Identify skill gaps among current members Recruit new members with needed skills Invest in Board training Set an example Establish coaching relationships Set reasonable goals

36. Direct Solicitation...Not Me! What you believe in must be bigger than what you are afraid of! You are giving people an opportunity to have an impact on a community problem they care about--It’s simply up to you to share your passion. The dollars WILL follow.

37. What If They Say “NO”? Overcoming Objections: Anticipate objections & be prepared Encourage prospect to tell you their reasons Listen carefully Clarify misinformation & offer opportunities to become more familiar with the cause Continue cultivation Can you get them involved?

38. Choose your fundraising methods strategically Build organizational capacity and infrastructure People give to other people - establishing relationships are key People give because of self-interest - know what motivates your donors You are asking for investments and partners, not charity and prospects Developing a compelling message is critical Money follows people - get prospects involved Few people give without being asked Best Practices Summary

39. Added Ideas, Comments, Questions???