FUNDRAISING SUCCESS Applying a Proven Philanthropic Model to Downtown Revitalization

PARTICIPATORY SESSION Name Position Title Organization Main Objective Group Discussions

First: Assign note taker: who likes to write? Assign reporter: who likes to talk in front of a group?

FUNDRAISING IS FUN! If you enjoy working with a high functioning team. If you’re proud of the work you are doing. If you’re committed to the cause you’re pursuing. I get to meet fascinating people that you get to

talk to about meaningful issues.

MY STORY Not a professional fundraiser But enjoy doing it See myself as an entrepreneur Leveraging existing revenue streams (BID,

membership, etc) to increase impact on our core mission. Result: Tripled operating budget over past 5 years + Raised 300k for downtown plan

CLEARLY DEFINED MISSION IS CRUCIAL Results in higher productivity and efficiency Discourages taking on new sexy projects that

undermine core mission. What are the key attributes of a mission

statement?

MY PREFERENCE Okay to have a separate vision statement But consolidating your vision or main

aspiration makes it easier for staff, board, stakeholders to understand

And makes for easy communication with funders!

Avoid “fuzzy mission syndrome”

KEY COMPONENTS OF MISSION STATEMENT ACCORDING TO DAVID Main Aspiration/Vision/Goal Up Front Unique Role that guides how you attack your

aspiration List the specific services you provide every

day that impacts the longer-term aspiration Circular logic – its impenetrable!!!

DRA MISSION: Aspiration: Continue the revitalization of

Raleigh’s Central District! $2.5 billion in new investments since 2005 Unique Role of the organization: By

enhancing (essential BID role) the investments of our public and private sector stakeholders

Saying clean and safe only, or create a live work play environment is meaningless and is really downplaying your impact!!!

HOW DO WE IMPACT THE CONTINUED REVITALIZATION OF DOWNTOWN ON A DAILY BASIS?

Through Five Core or Performance Services1. Economic Development (Attracting Investment)2. Clean and Safety Patrol Ambassadors (Maintaining physical

environment)3. Branding, Marketing and Events (Inviting & Hosting community)4. Advocacy, Membership, and Planning (Engaging our stakeholders)5. Public Space Management: (Bringing to Life)

BASED ON BOOK ENTITLED: Getting to Giving:

Fundraising the Entrepreneurial Way by a billion-dollar fundraiser

Authors:Howard Stevenson

With Shirley Spence

KEY TENETS OF FUNDRAISING Fundraising is far more professionalized But it remains a personal act Its voluntary Lots of people give money without getting

something tangible

MORE TENETS If you’ve done your homework, people will say “yes” more often than not. It’s measurable: you know exactly how you’re

doing. You have to find the right prospects. Every organization has to be entrepreneurial. Nonprofits (including BIDs) must pursue

opportunities beyond the resources they currently control

FUNDRAISING: THE DONOR’S FOUR BIG QUESTIONS

1. Are you doing important work?2. Are you well managed?3. Will my donation make a difference?4. Will the experience be satisfying to me?

The Donor Must Implicitly say yes to these four questions about your organization and

your cause.

DETAILED TABLETheme Key Points Questions for LeadersQuestion 1: Are you doing important work?

“Important to me” will vary by age, political leanings, life experience, competing claims, etc.It must be important to you, too. Fundraising is a job with psychic income

Why should the donor view downtown revitalization as important (versus nice to have or something having a purely economic or profit benefit versus a community benefit?How can we communicate our importance?How will we know we’ve done what we said we would (measures of success)?

Question 2: Are you well managed?

Donors don’t want to waste time and money.You can’t do it all; focus on the doable and stick to prioritiesBe totally transparent about your finances.

Does everyone understand the economics?What skills do we need to manage the organization effectively?

Question 3: Will my gift make a difference?

No general statements; be very specific about the opportunity.Be clear on impact and outcomes.

How can we communicate “bang for the buck”?How can we demonstrate something has changed?

Question 4: Will the experience be satisfying to me?

It’s a voluntary transaction, with “gives and gets”Different people want different things from donations.Details matter (e.g., timely invoices)

What will make the experience satisfying to this person?Does the whole organization understand the important of that? Do we say “thank you” enough?

Fundraising Leadership

Leadership must leadLeadership must manageLeadership must facilitate hard choices

Do we have shared vision? Are people excited about it?Are we being ambitious but realistic?How can we be the best at what we do?Do we know when – and how – to say “no”?

KEY RESPONSIBILITIES OF FUNDRAISING LEADER

1. Create a shared vision of success2. Accept responsibility for financial health of

organization3. Ensuring fundraising plans are ambitious but

realistic4. Take the competitive landscape into account5. Build competencies on every dimension6. Ensure fundraising plans are well-executed7. Ensure resources are available to everyone8. Remove impediments to performance9. Set ethical standards and norms

FORMULA: MEASURING YOUR FUNDRAISING PERFORMANCEDEVELOPING THE APPROPRIATE STRATEGY

Number of Donors x Closing % x Average Gift = Total Dollars (page 32)

Each variable is a “point of leverage” for developing a strategy

Raising $500,000 through 100 (5,000) donations will take forever

Get one $100,000 donation and two of $50,000

SUCCESS IN FUNDRAISING LEADERSHIP

Fundraising

leadership

Legacy

Significance

Happiness

Achievement

Helping Others Achieve their goals and improve their lives

Laying Foundation for societal good (revitalized downtown) that others will build on

Getting results, while solving important societal (dirty and dangerous downtown) problems

Satisfaction in job well done, working with people you respect

RAISING MONEY: BREAKING DOWN KEY ASPECTS OF FUNDRAISING LEADERSHIPEngage Prospect

Make Proposal Formalize Agreement

Nurture Relationship

- Get to know everything about your prospect-Basic data-What donor cares about-What “language” she speaks-How much personal involvement desired

Educate the prospect about the organization, from her perspective-Focus on things the donor wants to impact- use donor’s language

Determine what you have that might interest your prospect-Match between donor’s vision and your mission-- ability to tackle problem the donor wants to solve

Develop a “hip packet” of gift ideas-Know cost of each- Don’t pull out your list

- Time, place, setting- Satisfy your prospect that you are doing important work- That you are well managed- Donation will make difference-It will be a satisfying experience

-Describe gift ideas- tailor it to your prospect’s passions- get a sense of possible gift size

Determine next steps, keep ball in your court

-Be clear at end of each meeting- Conclude with “I’ve got some further work to do. I’ll be back to you then.”

Say thank you for-The meeting- interest in your work-- the donor’s other philanthropic work-- anything else you can think of

- Refine proposal

-Develop terms of agreement- financial terms- recognition- out clauses- governance

-Get them signed-Acknowledge the gift- institutional leaders- press releaseProcess the gift-Accurately- In a timely manner

Provide financial stewardship-Annual accounting- Other reporting

Communicate impact of donation-“show and tell” events- talent and beneficiaries

-Get/keep donor involved in organization- multiple “touch points”- regular communications-Volunteer positions

The donor; with an eye toward gift openings

Stay in touch with the donor to show you care

APPLYING MODEL TO CORPORATE EXECUTIVES VERSUS A PHILANTHROPIST Every CEO wants to be part of a successful

“group” or organization Focus on sense of achievement for younger

executives, legacy for older ones If not the CEO, ask your board member of

SVP how should the request be made? Ex – lead gift for a downtown plan

GROUP DISCUSSION:ARE YOU DOING IMPORTANT WORK? Passion for Mission:

What are the social/community benefits of a successful downtown?

What are the dangers of a dying downtown?

GROUP DISCUSSION:ARE YOU WELL MANAGED? How do I know your organization is well-

managed? List 5 quantitative indicators of your

organization’s past success.

GROUP DISCUSSION:WILL MY GIFT MAKE A DIFFERENCE? Be clear on impact and outcomes.

Identify a fundraising project List 5 quantifiable outcomes if project is funded

GROUP DISCUSSION:WILL THE EXPERIENCE BE SATISFYING TO ME? List 5 best practices that display excellent

customer service from the time you make the request to after the donor has agreed to make a contribution.

BENEFITS One Approach for every situation Model is easily tailored to donor Can be used to help yourself and other

nonprofits To fund a new downtown plan To fund a day-time facility for homeless To fund a live-work space for creative class To fund a new park in your downtown

LESSONS LEARNED Searching for magic tool for anything in your

work is folly Avoid the magic bullet philosophy!! Constantly refining your approach based on

a proven model is easier and you will enjoy success over the long-term

Buy the book!