Region 5

Parent Technical Assistance Conference

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Diversifying Revenuetitle style
through
Enhanced Fundraising Performance
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June 3, 2011

Richard Tollefson, The Phoenix Philanthropy Group

Joyce Millard Hoie, Raising Special Kids
 Your Issues and Questions
•  Role of the Executive Director
•  Role of the Board of Directors
•  How organizational capacity impacts
fundraising activity
•  Effective strategies for fundraising success
 Your Issues and Questions
•  Identifying donor prospects
•  Making the ask
•  Engaging staff, contractors, consultants
•  Others?
 Our Discussion
•  Charitable giving overview
•  Why raise funds?
•  Relationship management cycle
•  Comprehensive fundraising program
•  Foundation of fundraising
•  Volunteer/staff roles and responsibilities
 Our Discussion
•  Performance measures
•  What makes a successful fundraiser
•  Case study – Raising Special Kids
•  Your issues and questions
Charitable Giving
 2009 Charitable Giving =
$303.75 Billion
$ in billions –
All figures are
rounded
 Types of Recipients of Contributions

$ in billions –
All figures are
rounded
Total Giving, 1969–2009
The Number of 501(c)(3) Organizations
2000–2009
Why Raise Funds?
 Why Raise Funds?

•  Belief in the organization

–  Mission
–  Vision
–  Values

•  Support programs and services

 Why Raise Funds?

•  Increase brand awareness

•  Engage constituent base
•  Diversify revenue, increase financial stability
•  Help ensure ustainability
•  Impact those you serve
Relationship Management Cycle
 Fundraising is NOT Sales

It is:
•  Outstanding customer service
•  Mutually-beneficial relationships
•  Long-term partnerships and collaboration
•  Accountability
Relationship Management Cycle
Identification

Renewal Qualification

Donor-centric

Stewardship Cultivation

Solicitation
Comprehensive Fundraising Program
 Components Include…
•  Special events
•  Sponsorships
•  Annual fund
•  Major gifts
•  Planned giving
•  Special initiatives or campaigns
•  Government grant and contracts
 Giving Pyramid
Planned Giving

Major
Gifts
Work donors
up the pyramid Special Events

Sponsorships

Annual Fund

Expand the donor base

Return on Investment
Foundation of Fundraising
 Underlying Assumptions

•  Long-term, mutually beneficial relationships

•  Accountability
•  “Moves management”

…all in a DONOR-CENTRIC approach

 Foundation for Fundraising
•  Mission, vision, values
•  Unique position
•  Constituent relations
•  Brand, marketing, communications

And…
 Funding Priorities and Goals
•  Inventory, prioritize
•  Focus energy and work
•  Be realistic but assertive
•  Seek agreement throughout organization
•  Remain open to opportunities
 Case for Support
•  Clear and compelling
•  Relevant and urgent
•  Appeal to different motivations
•  Talk about:
–  Investments
–  Capacity-building
–  Growing and building for the future
–  NOT save a sinking ship or needs
 Prospect and Donor Base

•  Gather leads from research, screening and volunteers

•  Build lists of key contacts and high potentials
•  Determine who to cultivate and ask
 Leadership
•  Embrace the mission, vision, values
•  Ensure institutional responsibility
•  Be active advocates for the organization
•  Understand and participate in development
•  Lead by example
 Infrastructure
•  Donor research
•  Moves management
•  Donor recognition and stewardship
•  Gift and pledge processing
•  Internal financial accountability
•  Performance measurement
Roles and Responsibilities
of Volunteers and Staff
 Volunteers
•  Are advisors and resources
•  Are advocates
•  Are financial stewards
•  Open “rolodexes” and doors
•  Key contact with prospects (sometimes)
•  Give AND get
 Ideal Board of Directors
•  Lead by example
•  100% participation
–  At a level indicative of their leadership role
 Staff
•  Provide information about the organization
•  Prepare proposals and letters
•  Develop strategies
•  Manage relationship cycle process
•  Manage internal processes
•  Support volunteers
 Volunteer and Staff Relationship

•  Staff must prepare volunteers for success (and for

when they will not be successful)
•  No successful fundraising operation is 100% staff
driven
Performance Measures
 Metrics

•  Dollars raised
•  Activity measures
•  Portfolio of prospects
•  Acquisition, retention, upgrade
•  Cost of raising funds, and…
•  Direct and indirect impact of operations
Cultivation and Solicitation Success
 Cultivation and Solicitation Success

•  Make personal contact at highest level

•  Determine cultivation and solicitation team members
and roles
•  Fully prepare the team, and yourself
•  Have outcomes clearly in mind
 Cultivation and Solicitation Success

•  Prepare
•  Have contingency plans
•  Know and state your purpose
•  Ask leading questions
•  LISTEN
 Cultivation and Solicitation Success

•  Be respectful of time, opinions, situations

•  Make the ask directly
•  Know what you can and cannot accept
•  Be accountable
•  Follow up
•  Bring to an appropriate close
•  THANK DONORS, start stewardship process
Case Study – Raising Special Kids
 Raising Special Kids
•  Issues which lead RSK to explore
philanthropic fundraising
•  Getting started
•  Engaging a consultant
 RSK – First Steps in Building Strong
Fundraising Program
•  Assess the fundraising operation
•  Identify initial fundraising priorities
•  Create case for support
•  Apply logic model to strategic plans
•  Develop initial and long-term fundraising plans
•  Identify initial donor prospects
•  Assist with Board development
Your Issues and Questions
 A Review…
Your Issues and Questions
•  Role of the Executive Director
•  Role of the Board of Directors
•  How organizational capacity impacts
fundraising activity
•  Effective strategies for fundraising success
 A Review…
Your Issues and Questions
•  Identifying donor prospects
•  Making the ask
•  Engaging staff, contractors, consultants
•  Others?
Thank You!