The document provides guidance for developing a fund development plan for nonprofit organizations and DEC grantees. It discusses establishing fund development responsibilities and oversight structures. A key part is developing a multi-year fund development plan that identifies goals, strategies, budgets and timelines. The plan should be based on assessing organizational strengths/weaknesses and the external funding environment. A variety of fundraising strategies are explored, from events and direct mail to online giving. Tracking results and revising the plan annually is also recommended. The document emphasizes establishing relationships with current and prospective donors as the most effective way to raise funds.

1. Fund Development forDEC CoordinatorsExploring Fundraising and Resource Generation

2. Key Learning ObjectivesRole of fund development for organizations and DEC grantees

3. Learn the various fund & resource development responsibilities

4. Learn the components of a development plan & how to formulate & implement strategies

5. Explore strategies for communicating your impactThe Need for Resources and SupportEconomic DownturnCompetition for fundingDEC grants and overall project costsUnderstanding and Implementing Fund Development

6. Fund Development ResponsibilitiesAccountabilityEthical PrinciplesOversightParticipation

7. AccountabilityAwareness & compliance with the intent of federal, state & local laws regulating charitable solicitationAttorney General’s Office

8. IRS

9. OtherEstablish & exercise adequate controls over fundraising activitiesAccuracy, integrity & accountability in all solicitation activities, materials, representations, etc.

10. Ethical PrinciplesMotivated by mission, merits & resource needsRespect for the privacy of donorsAdministrative & fundraising expenses should be fair, reasonable, documented & disclosed (reported on IRS Form 990)

11. Oversight Establish an appropriate governance structureEnsure development efforts meet the budgetary needsEnsure resources are available to maximize returnsDevelop a development plan

12. ParticipationPersonal contributionInvolvementIdentifying and cultivating resourcesGovernment relationsSolicitation

13. Who’s on First?The Development CommitteePrepares Development Plan Models and encourages involvement in implementationMonitors and reports progressEvaluates efforts Revises plan

14. Why have a Plan?Challenges & replaces magical or wishful thinkingCoordinates people, fund raising & marketing efforts with the organizational strategic planGets “buy-in” from participants regarding:GoalsRolesPrioritiesAccountability

15. Why have a Plan? (cont’d)Helps to pace your annual effortsGreat orientation tool for partners, volunteers, Board and staffCreates understanding of everyone’s fund raising roles & responsibilitiesIs outcome-based & measurable which helps you learn & measure your success

16. Strategic Questions to AskWhat are the real needs for the project or organization?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?

17. 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

18. Fund Development environmental analysis

19. Goals & Objectives

20. Strategies

21. Human resource needs

22. Budget

23. Timelines

24. Accountability

25. EvaluationDeveloping Your Case for SupportWhat do you need money for?How much do you need?Why would someone want to contribute?Benefits to participants or audienceBenefits to the donorBenefits to the community

26. Analysis of Fund Development EnvironmentExternal Environment (Opportunities & Threats)Competitors

27. Community awareness & relationships

28. Perceptions of activities (quality & need)

29. EconomyAnalysis of Your Fund Development Environment (cont’d)Internal Environment (Strengths & Weaknesses)Evaluation of previous efforts

30. Staffing capacity & support

31. Financial management infrastructure & technology

32. Fundraising software

33. Budget available for development efforts

34. Volunteers’ commitment to fundraising

35. Marketing materialsIdentify Your FundraisingStrategiesOn-lineactivitySpecial eventsDirect mailRadio, television or print adsPhone-a-thons Face-to-face solicitationOther?

36. Each Strategy Serves a PurposeWhile it may not offer the greatest immediatefinancial return, it may:Establish credibility

37. Generate positive public exposure for organization and increase public awareness

38. Reach out to potential new donors

39. “Set the table” for future gifts

40. Involve new volunteers--your best ambassadors in the community

41. Raise the profile of your cause or missionDevelop a Master BudgetIt takes money to raise money, but how much can you afford?Remember that time is money - if it takes time, there is a costEven 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

42. So How Did We Do?Evaluating the PlanReview & fine-tune the plan annually

43. Were costs reasonable compared to income?

44. Were targets & outcomes realistic?

45. Consider the non-financial benefits of each effort

46. Are you moving toward your long-term goals? Who Receives the Money?Source: Giving USA 2010

47. Why Focus on the Individual?Source of 75% of charitable contributionsNeed for unrestricted dollarsReduced funding from government and foundationsBuilds a broad-based support Requires Board involvement and Builds LOCAL support

48. Key Concepts in Fund RaisingDevelopment is the process of building relationshipsFund-raising is setting up opportunities to actually ask for money80% of the money you raise will come from 20% of the donorsLower income people give a greater percentage of their income than wealthier donorsThe #1 reason people don’t give is because no one asked!

49. Success Rate of Fund Raising ActivitiesBased on Ratio of Time Invested to Financial ReturnPersonal 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

50. 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.

51. Messages that ConnectIs it right for your audience?Keep it SimpleMake it memorableUnexpectedConcreteEmotional, tapping into positive or negative feelings

52. Change Your Message…Your Message Doesn’t Have to Be…TellingA Mission StatementThree paragraphs LongAn “About Us” Page Expensive

53. Why Me?Why Now?What For?

54. “I love saving you money.”(I know what you want)

55. 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

56. Cultivate Plants… Relate to People…Old: The higher the ask the longer the “cultivation period.”

57. New: The bigger connection to impact the better the partnership

58. Old: Major gifts are infrequently asked for or given and require a personalized cultivation plan and solicitation.

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. Old: Nonprofit “charities” ask for donations. Giving is the ‘right thing to do.’

61. New: Nonprofit businesses provide opportunities to invest in your community, and see the return for the people, region, cause you care about.Remember Why People GiveShare goals the organization pursuesPersonal connections with staff, board, clients or volunteersPersonal gratitude toward the organizationInvolvement in the life of the organizationEnlightened self-interestBeing askedJoy

62. Case Study In Making It Simple: “In A Nutshell”“The Soap Box and Toolbox for New York’s Nonprofits.”

63. What’s Your ‘Impact Statement’?Impact StatementWHATWHYHOW

64. Best Practice SummaryChoose your fundraising methods strategicallyBuild organizational capacity and infrastructurePeople give to other people - establishing relationships are keyPeople give because of self-interest - know what motivates your donorsYou are asking for investments and partners, not charity and prospectsDeveloping a compelling message is criticalMoney follows people - get prospects involvedFew people give without being asked

65. Added Ideas, Comments, Questions???