the top 11 arts and cultural fundraising trends and how ... · fundraising within the corporate...
TRANSCRIPT
��������The Top 11 Arts and Cultural Fundraising Trends and How the
Recession has Changed Fundraising
06/28/2011 1
Recession has Changed Fundraising
Please mute your phone while listening and only release when you have questions.
BEFORE WE GET STARTED…
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Please do not put the call on hold – please hang up and call back to eliminate hold music playing during the session
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TODAY’S AGENDA
• Part I: Clayton Bass, Partner, Alexander�Haas- Mr. Bass will discuss why you have to have a credible business plan that demonstrates
how you will sustain yourself, why you must be able to document your success and real needs, and how the geometry of fundraising has changed.
- ** Participants are invited to ask questions
• Altru Overview: Courtney Grainger, Solutions Consultant,
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• Altru Overview: Courtney Grainger, Solutions Consultant, Blackbaud - See a brief high level demonstration of how Altru enables organizations to react to the
changing climate in the fundraising environment to maximize
- **Participants are invited to ask questions about Altru
Clayton Bass
• Brings over twenty years of museum management and fundraising experience as a partner to the Alexander Haas team.
• As a consultant, he has worked with numerous museums including the Spelman College Museum of Art, the Lamar Dodd Art Center at LaGrange College and was the principal designer and general contractor for the inaugural Airport Art Program for Concourse E at Hartsfield-Jackson Atlanta International Airport.
• Clayton is an experienced retreat facilitator focusing on board and staff development, governance best practices and long-range planning, and a frequent speaker on topics such as exploring
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planning, and a frequent speaker on topics such as exploring fundraising within the corporate sector, project development, and institutional sustainability in a challenging economy.
• Served for eight years as President and CEO of the Huntsville Museum of Art (HMA) in Alabama.
• Seven years as Executive Director of the Walter Anderson Museum of Art (WAMA) in Mississippi.
• Seven years as Coordinator of Exhibitions at the Michael C. Carlos Museum at Emory University.
1. You must have a credible business plan that demonstrates how you will sustain yourself:A. Whether you work with a professional firm, a university or
college, or develop a plan in-house, strive to engage the greatest expertise available. A comprehensive business plan will:� Allow you to demonstrate to your donors that your organization is sustainable and
their support is a good investment � Provide realistic forecasts of earned income streams, expenses and projections
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B. What is earned income? It is revenue your organization generates from:� Daily admissions� Membership dues, at basic levels are really prepaid discounted admissions.
Amounts above the basic level in fact are underwriting, whether designated or undesignated
� Store sales� Restaurant sales or lease income, depending on the arrangement if in-house or
outsourced� Program admissions, for lectures, films, concerts or workshop fees
C. A comprehensive business plan will: � Evaluate and confirm your organization’s position within its local and
regional market
� Help you develop a sustainable budget that includes incurred expenses needed to generate earned income and other revenue streams
� Provide accurate data, both revenues and expenses
� Bring your organization’s complete financial picture into focus
D. An effective business plan should:
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D. An effective business plan should:
� Include comprehensive statistical data resulting from extensive research that is pertinent to your location and market
� Identify and examine organizations or other entities that compete directly for your admission, membership or other earned income dollars
E. A well developed business plan will show you the Big Picture:
� It is a critical tool for creating strategic finance, development, marketing and program plans for your organization’s future
� To be successful you must understand trends and develop strategies to make the most of strengths and address weaknesses
F. Alexander Haas focuses primarily upon
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F. Alexander Haas focuses primarily upon fundraising services and does not offer business planning to clients, however:
� We recommend companies who provide extraordinary results for projects that require business plan development
� For more information contact me:[email protected]
A. Non-profits must be vigilant and consistent when gathering statistics• Carefully assess what information will be the most useful for your organization to
make a strong case for support to your donors
B. There are many excellent tools available for gathering statistics:• Point of sale systems at the front desk or in the store. Are you maximizing the
data you can gather from it?
2.1 You must be able to document - Your Success:
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data you can gather from it? • If a point of sale system is not in your budget, well trained front-line staff is
essential for gathering critical data. Staff should keep interaction with visitors welcoming, informative and concise
• Visitors surveys are low tech but effective. Make it quick and easy! • Does your organization’s website allow on-line purchases from your store using
PayPal or another e-payment service? Track these purchases and see if special promotions or sales receive greater response
• Are you making it easy for the public to interact with your organization on the web, on the phone or through your printed materials?
• Do you offer on-line membership subscriptions or ticket sales?
C. Vital statistics can vary depending upon your organization’s mission. Examples that you will want to share with individual and corporate donors, foundations and governmental agencies include:
� Zip codes to show geographic reach and diversity of your visitors (one of the most critical)
� Attendance by age group� Tours - schools, seniors or others that may be specific to your mission� Members versus non-members, and don’t forget new members
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� Members versus non-members, and don’t forget new members� Outreach impact upon audiences off-site� Program and workshop participants, especially important for an event or
series underwriter� Multi-year statistical trends paint a picture that will be of great interest to
your supporters� Compare seasons - Does your organization have strong or weak cycles?
Are they consistent? You can learn much by studying trends over the years� Are you initiating membership campaigns or adjusting programming to
strengthen weak periods, or maximize strong seasons?
A. Needs and wants are not the same:• Carefully measure the perceived need against its impact upon the
organization’s ability to deliver its mission
B. Get input about needs, and LISTEN:• Assessing the organization’s needs with staff is critical and time well spent
2.2 You must be able to document - Real Needs
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• Listen to board and volunteers as well
C. Identify the right funding sources:
• Once a need has met the “critical to mission” test, develop strategies for matching the need with the right donor based upon their giving history or interests
• Data from the business plan and compelling statistics provides essential tools to strengthen the case for support when requesting funds for the critical need
A. Sarbanes-Oxley Act of 2002 (Post Enron) has impacted corporate giving. Companies must now demonstrate HOW a donation relates to its purpose and strengthens the bottom line for shareholders
� Corporate giving accounted for only 5% of all philanthropy in 2010
3. The geometry of fundraising has changed
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2010
2010 Charitable Giving Total = $290.89 billion
($ in billions – All figures are rounded) Corporations$15.29
5%
Foundations$41.00 14%
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Bequests$22.83
8%
Individuals$211.77
73%
Source: Giving USA
B. Individuals remain the largest source of philanthropy, accounting for 88% of all gifts when including planned giving and family foundations
� Organizations who want to maximize their fundraising results should direct their resources according to trends in philanthropy
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� Conduct a thorough audit of your organization’s development program to determine how its human, financial and board resources are being directed for fundraising
Types of Recipients of Contributions, 2010
Total = $290.89 billion
Religion$100.63
35%
Arts, culture, & humanities $13.28
5%
International affairs$15.77
5%
Environment/animals $6.66
2%
To individuals
$4.20 2%
Unallocated $2.12 1%
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Education$41.67
14%
Gifts to grantmakingfoundations
$33.00 11%
Human services $26.49
9%
Health$22.83
8%
Public-society benefit $24.24
8%
`̀̀̀̀
Includes rounding to get to 100%
`
Source: Giving USA
C. Government funding continues to decline
Museum Operating Income
20 year trend
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06/28/2011 15Source: Giving USA
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Good news! Declining government support is being off-set by contributed income, primarily from individuals.
The landscape of philanthropy is ever changing. By directing your organization’s resources toward areas of greatest potential, you will increase your success!
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success!
Questions?
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Altru is the first technology solution that centralizes all information arts and cultural organizations need, allowing you to strategically unite your entire organization, personally engage each supporter,
and make every visitor experience exceptional.
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PARTNERING WITH LEADING ARTS & CULTURAL ASSOCIATIONS
“Museums of all types and sizes, from aquariums and historic sites to art museums and zoos, are always searching for more efficient ways to do business, particularly in this economic climate. As AAM continually strives to advocate
“The Association of Children’s Museums is pleased to announce that Altru, powered by Blackbaud, is now part of the ACM Affinity Partnership Program, which brokers high-quality products or services at a discount for members. As an
“The American Public Gardens Association is committed to raising the professionalism of our member gardens. In today’s uncertain economic climate, we know that our members need a competitive edge in all areas of their business, as well as the ability to streamline their
Association of American Museums
American Public Garden Association
Association of Children’s Museums
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on behalf of the field and provide outstanding service to our members, we applaud Blackbaud for its inclusion in AAM's member discount program and for providing this new solution at a discount to AAM members.”
Ford W. BellPresident
Affinity Partner, Altru offers what our members have been asking for: a unified museum management solution that is priced affordably for most organizational types and sizes.”
Janet Rice ElmanExecutive Director
ability to streamline their operations. Therefore, APGA is pleased to offer the Altru Affinity Program to provide a discount on Altru to our APGA member gardens.”
Daniel J. StarkExecutive Director
MEETALTRU.
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Improve cultivation and communicationsImprove cultivation and communications
ALTRU’S ORGANIZATIONAL IMPACT
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Gain efficiencies and improve data analysisGain efficiencies and improve data analysis
Increase membership retention and acquisition Increase membership retention and acquisition
Provide organizational efficiencyProvide organizational efficiency
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