UNITED WAY LEARNING SERIES

Developing a Strategic

Fund Development Plan

Agenda

Fundamentals of a Strategic Fund Development Plan

Ten Funding Models

Creating a Plan That Works for Your Nonprofit

Schedule

9:00 – 9:20 REGISTRATION & NETWORKING

9:20 – 10:00 PRESENTATION & DISCUSSION

10:00 – 10:15 BREAK

10:15 – 10:55 SMALL GROUP WORK

10:55 – 11:30 REPORT BACK

11:30 Q&A & WRAP UP

Who is here today?

• Human Service

• Arts and culture

• Education

• Health

• International

• Environmental

Nonprofit Type:

• Up to $1MM

• $1 - $5MM

• $5 - $10MM

• $10MM +

Size:

• Government

• Foundations

• Corporate

• Individual: mem/annual

• Individual: major donor

• Workplace giving

• Fees for services

Major Funding Source

• DOD

• ED

• Other Roles

What challenges do we face…

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…in creating a fund

development plan?

What makes a plan “strategic”?

STRATEGY is about making CHOICES:

1. broad approach

2. leverage your distinctive assets

3. achieve your goal.

What do donors fund?

Organization

IMPACT

MISSION

BRAND

VISION

PEOPLE

It’s all about the people

YOUR DONORS

• Passion

• Motivation

• Connection to your people

• Decision-makers

• Affluence

• Benefits they receive

YOUR LEADERS AND TEAM

• Passion

• Ability to inspire

• Relationship-building

• Time spent on fundraising

• Making the case

• Stories of impact

Where are your people giving?

Individuals Top Bridge Base Foundations Corporations Government Workplace

LEADERSHIP GIFTS $5000 +

MAJOR GIFTS $1000+

BASE $100 +

Your funding strategy

Where is the opportunity

Currently the strongest?

Not worth pursuing

Tactics follow strategy

Funding Strategy

Financial Targets

Programs

Key Tactics

Action Plan

Ten Funding Models

Stanford Social Innovation Review

1-Heartfelt Connector

2-Beneficiary Builder

3-Member Motivator

4-Big Bettor

Peter Kim, Gail Perreault & William Foster,

Stanford Social Innovation Review, 2009

“Ten Nonprofit Funding Models”

8-Resource Recycler

9-Market Maker

10-Local Nationalizer

5-Public Provider

6-Policy Innovator

7-Beneficiary Broker

Core elements of funding models

14

• Individuals, foundations, government, corporations, mixed

Source

• Multitude of individuals, few individuals, policy-makers, administrators

Decision-maker

• Self-interest, altruism, collective interest

Motivation

Primary Source - Individuals

MODEL Heartfelt Connector Beneficiary Builder Member Motivator Big Bettor

Character-istics

Broad mission appeal Provides individual benefits & connection

Serve a group, creates collective community

Mission may be fulfilled within timeframe

Examples Medical research, environment, international

Universities, hospitals Religious congregations, arts, environment

Medical research, environment

Save the Children Harvard University NPR March of Dimes (polio)

Source Individual Individual Individual Individual or Foundation

Decision-Maker

Multitude of individuals

Multitude of individuals

Multitude of individuals

Few individuals

Motivation Altruism Self-interest then altruism

Collective Interest Altruism

Programs/ Tactics

Special events… Direct mail… Corporate sponsorships

Fees… Major gifts Membership… Fees… Special events… Major gifts… Direct mail

Major gifts

Primary Source - Government

MODEL Public Provider Policy Innovator Benficiary Broker

Character-istics

Provides services seen as govt responsibilities

Offers significant new approach, often result of crisis

Beneficiaries decide how to spend the money

Examples Human services, education, international

Human services, education, international

Health, housing, employment

Interfaith Works (homeless shelters)

Latin American Youth Center (LAYC Academy)

Ardmore Enterprises (disabilities)

Source Government (via RFP) Government (via champion}

Government (via reimbusement)

Decision-Maker

Administrators Policymakers Multitude of individuals

Motivation Collective interest Collective interest Self-interest

Programs/ Tactics

Government Contracts Earmark or govt. pilot project

Gov't. reimbursement

Primary Source – Corp. + Mixed

MODEL Resource Recycler Market Maker Local Nationalizer

Character-istics

Nonprofit uses surplus or low-cost goods

Funder with self-interest and abililty to pay

Top priority local issue, common to many localities

Examples Food, international Health, conservation Education, youth development

Capital Area Food Bank The Trust for Public Land Big Brothers Big Sisters of America

Source Corporate Mixed Mixed

Decision-Maker

Few individuals Mass of individuals / few individuals

Few individuals

Motivation Self-interest Altruism/self-interest Altruism

Programs/ Tactics

In-kind giving Fees… Major gifts Major gifts… Special events

Creating a Plan

Strategic Development Plan

Mission, Vision, Impact,

Strategic Plan

Core Funding Strategy

Realistic & Ambitious FINANCIAL

GOAL

Core Messages

Donor Segmen-

tation and Stewardship

Key Tactics

Financial Targets per

Donor Type & Tactics

Roles of ED, DOD,

Board, Volunteers

Activity Calendar, Budget, Systems

STRATEGIC DEVELOPMENT PLAN

Strategic Development Plan Outline

DEVELOPMENT PLAN FOR DEV COM & BOARD

Goal - $ For contributed revenue

Breakdown By source and/or program

Core strategies Major approaches to achieving goal

Annual Objectives Measurable objectives per source, program, strategy etc.

Activity calendar By month at a minimum

Expense Budget Major categories, at a minimum

ACTION PLAN INTERNAL

Tactics, project timelines, staffing, systems, itemized budgets etc.

Detailed implementation plans that guide development operations

Let’s get going!

1 Consider how CP® Fund Development - Strategy Planning Tool relates to your nonprofit

2 Get input from others at table

3 Divide into new teams based on funding model

4 As a team, select one organization as a “case study” for planning as time permits.

5 Report back (5 minutes each group)

Table Team Work

Thank you to our Sponsor and Partners!

And special thanks to all of you!

Mary Robinson Julie Crudele

Sponsored By