Fundraising Fundamentals

Loving Philanthropy!

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Agenda1. Framework

– Trends

– Goals

– SROI

– Process

2. Building blocks of success

3. Finding generous and committed donors and volunteers

4. Roles and responsibilities

– CEO

– CDO

– Board

5. High performing boards

6. Donor visits

– Listening, questioning

– Getting appointment

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Agenda

7. Stewardship and donor engagement

8. Artful solicitations

9. Action planning

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2012 Contributions: $316.23 billion by source of contributions(in billions of dollars – all figures are rounded)

Changing Demographics* *Chronicle of Philanthropy 8.15.13

1. Diversity

2. Women

3. Millennials want impact and hands on engagement

4. Baby boomers are 34% of all donors but 43% of all individual giving

5. Lesbian and gay donors growing more visible

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Trends**Blackbaud 2013 Study

1. Most Americans give. Matures or Elders (born before 1945) are the most generous

2. Multi-channel is the new normal (and brings in the best results)

3. Crowdfunding on the rise

4. Social media is undervalued when only measuring dollars raised (engagement is its real worth)

5. Direct Mail isn’t dead; telemarketing and giving via text have cloudy futures

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Joe Connolly, WSJ (2013)

“Retention is the new acquisition

Customer service is the new marketing”

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Inspired, Joyful, Generous Investing

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Personal Capital

Human

Intellectual

Network

Financial

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Ernie Ludy, Founder Medstat

Want to Make a Difference

• SROI – mission measurement

• ROI – investment in fund development

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Management Process Why =

Vision, Plan, Priorities, Case

How = Strategies,

Staff, Board of

Directors

Who = DonorsWhat = Results,

Metrics

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Ultimate

Principal

Major

Leadership Annual

Annual or Regular

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Annual or Regular Giving Programs

1. Direct mail

2. Online

3. Monthly and payroll deduction

4. Social media

5. Phone

6. Street (peer to peer)

7. Checkout counter (cause marketing)

7. Volunteer

8. Special events

9. In-kind

10. Corporate matching

11. Challenges

12. Leadership annual

13. Tied to a major gift solicitation

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“No one ever bought anything on an elevator” Seth Godin

Selling versus Enrolling

•Stuff

•Outputs

•Impact

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What

How

Why

BIG IDEAS AND IMPACT

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What Problems are Your Solving?

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Mission Vision Values

Building Blocks

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Strategic Plan

• In support of the vision

• In alignment with values

• Fundraising priorities

• Costs

• Case for support

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Level People Programs Plant Technology

$1,000,000

$ 500,000

$ 250,000

$ 100,000

Giving and Naming Opportunities

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Annual Giving Impact Statement

• What do you accomplish?

• Why is it important?

• Why is it urgent?

• How can I make a difference?

• $50,000

• $25,000

• $10,000

• $ 5,000

• $ 2,500

• $ 1,000

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Story Telling

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Management Process Why =

Vision, Plan, Priorities, Case

How = Strategies,

Staff, Board of

Directors

Who = DonorsWhat = Results,

Metrics

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Realized Tables of GiftsGiving Level Type (Individual, corporate,

foundation)Name-by-Name

$50,000

$25,000

$10,000

$ 5,000

$ 1,000

$ 500

$ 250

$ 100

Best Prospective Donors

• Current leadership donors

• Current major donors

• Grantors

• Lapsed donors 1 to 2 years

• Donors who upgraded

• Give more than average gift

• Give from stock

• Trust bank

• Have you in their will

• Loyal

• Data mine

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Data Mining and Wealth Screening

Prospective Donors Identified

Level Individuals Corporations Foundations Government

$1,300,000 0 0 0 0

$ 750,000 1 0 0 0

$ 500,000 3 0 1 0

$ 250,000 1 0 1 0

$ 100,000 10 1 2 4

$ 50,000 15 3 2 5

Strategies

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Building Transformational Donor Relationships

• Driven by the values, needs and motivations of the donor tied to priorities

• Managed through the donor cycle.

• Key person responsible for maximizing relationship with the organization

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Roles and Responsibilities

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CEO

BoardCDO

1. Develop your vision and share it, seek input

2. Strategic plan that will achieve the vision

3. Values that will guide the work

4. Big ideas requiring major investment

5. Ensure a strategically composed and engaged high performing board of at least 20 to 25 individuals

CEO (As Discussed)

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Be a Level 5 Leader* *Jim Collins

Level 5 Leadership Humility, Professional Will

Legislative skill

Level 4 Vigorously pursues clear

compelling vision; sets and

meets high performance

standards

Level 3 Organizes people and resources

toward goals

Level 2 Contributing team member to

overall goals

Level 1 Highly capable individual

Make Time

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• Top 50

• Know!

– Strategy

– Visit

– Calls

– Notes

• Partner with CDO

Your Donor Pool

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Invest in Fund Development and Marketing

• Adequately staff it

• Culture of Philanthropy

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“Culture Eats Strategy for Lunch”**Peter Drucker

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• Must Have

• Very Important

• Specific Needs based on strategic plan, values

Strategically Composed Board

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The Tarnside Curve of Involvement*Developed by Patrick Boggen, Tarnside Consulting, UK

High

GIV

ING

INVOLVEMENT High

Awareness Interest

Engagement

Commitment

Ownership

Taking Personal

Responsibility

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Top Ten Philanthropy Responsibilities

1. Make your organization #1, 2 or 3 philanthropic priority

2. Give generously (stretch gifts) and early3. Build a strategically composed, engaged board4. Know mission, vision and work; be able to articulate5. Be a Passionate Ambassador6. Introduce others7. Make personal visits8. Participate in stewardship- share the joy!9. Invest in Fund Development10. Learn all about Fund Development

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METRICS

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Management Process Why =

Vision, Plan, Priorities, Case

How = Strategies,

Staff, Board of

Directors

Who = DonorsWhat = Results,

Metrics

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Metrics

• What have we discussed already?

• Retention, loyalty

• Upgrades

• Yes rates

• Social and new media

• Event conversions

• Acquisition

• Re-acquisition

• Board stats

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DONOR VISIT -- DISCOVERY

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What Do You Want to Know?

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Getting the Appointment

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Slow Down Your Listening**Communications Solutions

• Most people speak at an average rate of 120 words a minute

• Most people listen about four times faster

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Types of Questions* *Neil Rackham

• Open ended and closed• New Information• Clarification• Confirmation• Attitude and Values• Implication• Commitment

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STEWARDSHIP AND ENGAGEMENT

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1. Doing what we said (accountability and transparency)

2. Documenting expectations

– Particulars

– Decision makers

– Intent and motivations

3. Thanking within 24 to 72 hours

Defining Stewardship

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• Asking questions

• Listening to understand

First Questions

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Make It Personal – Share the Promise

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4. Providing appropriate and desired recognition

5. Connecting donor/volunteers to the impactof their “all in” investments in pleasing and creative ways using a wide array of tools, voices and experiences

Defining Stewardship

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Stewardship = “WOW”

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WOW Components?

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StewardshipMultipleVoices

Personal

Connect the Dots

Impact!!!!

AuthenticS

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High ImpactShorter Term

High ImpactLonger Term

Low ImpactGeneral

Low Impact Shorter Term

Suite of Engagement Opportunities

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ARTFUL SOLICITATIONS

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• Right Purpose

• Right Amount

• Right Solicitation Team

• Right Time

• Right Participants

• Right Place

• Right Materials

Lining Up The Rights

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Yes to Institution

Yes Vision & Leadership

Yes to Role of Philanthropy

Yes to Concerns Addressed

Yes to Scope, Purpose

Would you consider…?

The Upside Down Triangle©

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High ImpactHarder to Achieve

High ImpactEasier to Achieve

Lower ImpactHarder to Achieve

Lower ImpactEasier to Achieve

Action Planning – “I Will…”

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“Even if you are on the right track, you’ll get run over if you just sit there.”

Will Rogers

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