November 3, 2009

The Nonprofit Partnership Erie, Pennsylvania

Don’t Just Survive, Prosper!

Fundraising and Campaigns in Challenging Times

About Jeffrey Byrne & Associates

• National firm headquartered in Kansas City

• Capital, endowment and major gift campaigns

• Member of Giving Institute - Leading Consultants to Non-profits

• Philosophy, approach and methodology

Vice President, Jeffrey Byrne & Associates, Inc.

•23 years with the YMCA as CEO, Executive Director

•Ran more than 20 successful annual campaigns in six different communities throughout career

•Presented at this year’s national YMCA convention in Dallas, TX on involving members and volunteers in the fundraising process

•Consults on all phases of annual and capital campaigns

Gary Rick

2008 Charitable Giving : $307.65 Billion

Source: Giving USA Foundation™ / Giving USA 2009

Individuals$229.28

75%

Foundations$41.21 13%

Bequests$22.66

7%

Corporations$14.50

5%

2008 Contributions : $307.65 Billion By Type of Recipient Organization

Source: Giving USA Foundation™ / Giving USA 2009

Environmentand Animals

$6.58 - 2%

Grants toIndividuals*$3.71 - 1%

HumanServices

$25.88 - 9%

InternationalAffairs

$13.30 - 4 %

Arts, Culture, and Humanities

$12.79 - 4%

Public-Society Benefit

$23.88 - 8%

Health $21.64 - 7 %

Gifts toFoundations$32.65 - 11%

*Foundation grants awarded to individuals

Religion $106.89

35%Education$40.94 13%

Unallocatedgiving

$19.39 - 6%

Recession Years Giving 1967 - 2007

Individuals$199.07 76.5%

Education$43.32 14.1%

Essential Fundraising

Individuals$199.07 76.5%

Establishing and managing development

best practices that lead to a culture of

ongoing fundraising throughout the

organization

Essential Fundraising Includes

• Planning

• Training

• Communications; and

• Ongoing Fundraising Activities

Individuals$199.07 76.5%

Planning

Strategic Plans

Facilitated meetings when organizations collaboratively develop goals and objectives

•SWOT analysis (environmental scan)

•Define and agree on mission and vision

•Detailed plan with timelines and accountabilities

Resource Development Plans

Begin with understanding:

•Functional areas and the impact on revenue

•Relevance of programs to mission

•Urgency of mission to motivate financial support

•Situational analysis of fundraising for last 3 years

•Volunteer perception of fundraising

Planning

Planning (+)

Resource Development Plans (Process)

• Internal capacity for fundraising

• Capacity to attract external support,

• Current revenue portfolio

• Fundraising history

• Infrastructure and current and future needs;

• Volunteer leadership

• Case for Support

Planning (+)

Resource Development Plans (Deliverables)

• Develop fundraising strategies to include an Annual Campaign, Corporate and Foundation Gifts, Special Events, Major Giving and Planned Giving;

•  Assess the organization’s current and potential donors and prospects in all categories and make recommendations for new prospects;

• Make recommendations for solicitation of specific individual, corporate and foundation donors

 

Planning (+)

Resource Development Plans (Deliverables)

• Provide guidance on the proper structure of the organization to enhance capacity-building

• Make recommendations regarding additional fundraising materials indicated by the assessment, to include development or refinement of a Case for Support

Resource Development Plans

Conclude with:

•Specific planning recommendations for growth

•Timelines and an action plan with accountabilities

•Leadership commitment to monitor and follow through

Planning

Individuals$199.07 76.5%

Business Plans

•Blend operational, strategic, budget and forecast planning

•Summarize operational and financial objectives

Planning

Business Plans

•Contain detailed budgets showing how the objectives are to be realized.

•Project future opportunities for the organization

•Map financial, operations, marketing and organizational strategies to achieve goals

Planning

Fundraising Training

•Teaching volunteer leaders best practices in donor cultivation and solicitation

“Six Elements to a Successful Solicitation”

•Rallying leaders to articulate the case for support

•The art of making “the ask”

Training

Individuals$199.07 76.5%

Leadership Training

•Strategically developing “resource leaders”

•Board recruitment

•Defining board responsibilities

•Board orientation process

•Leadership evaluation

•Board mentoring

Training

Individuals$199.07 76.5%

Defining Your Message/Case for Support

•All organization ambassadors must communicate a consistent message

•The message must be valid, relevant and compelling

•It should describe how community and organizational needs will be met

•It should include personal stories

Communications

Individuals$199.07 76.5%

Personal Communications

Case statement; Brochures; Electronic media such as website, blog, emails, online fundraising; Direct mail; and Written thank you notes

Verbal Communications

Phone call; Personal visits; Donor events, luncheons, tours; Board meetings, staff meetings

Communications

Grant Management and Writing

Success is based upon:

•Relationship building

•Understanding and responding to grant qualifications and specifications

•Include board members on site visits

Ongoing Fundraising

Annual Fund

•Solicitation: Mail, Phone-a-thon, Face to face, and Acquisition

•Major gifts

•Special (signature) events: Cultivation and Fundraising

Ongoing Fundraising

Development Calendar

Volunteer leadership and donors are more likely to support your activities when they are regular and scheduled in a timely manner.•Annual campaign activities

•Special events

•Community outreach and site visits

•Board meetings, annual meetings

•Communication distribution dates

Ongoing Fundraising

Donor Stewardship

•Administration of contributions

•Use of restricted gifts

•Personal and meaningful thank you

•A step-by-step action plan of moving donors to ultimate level of giving

Ongoing Fundraising

Database Management

•Procedures and assigned personnel for ongoing update

•Cross departmental integration and sharing of information

•Appropriate database software

Ongoing Fundraising

YOUR annual campaign

Strengths and Weaknesses

Annual Campaign (+)

Why Do We Have an Annual Campaign? (+)

It is not just about the money.

A successful annual fundraising campaign helps achieve the mission and strengthen the unique nature of the nonprofit organization.

Function of the Annual Campaign (+)

• Communicating the organization’s work to the community and building goodwill.

• Secure funding to deliver on the organization’s mission-based promises

• Discover and develop leaders.

Reasons Annual Campaigns Fall Short (+)

• Inadequate board participation• Incomplete prospect list• Improper assignment of prospects • Poorly trained campaigners • Poorly planned report meetings • Inadequate publicity build-up • Inadequate records and evaluation • Lack of commitment by top campaign leadership

Two Campaigns In One (+)

The campaign for volunteers and the campaign leadership

The campaign for contributions

Campaign General Plan (+)

Should include at least the following:

• Campaign case• Campaign goals and success indicators• Action steps defining strategies to achieve goals• Job descriptions• Organizational chart• Campaign calendar• Expense budget

Campaign Benchmarks (+)

• Number of households in service area making a gift• Increase in the number of campaign volunteers

over the previous year.• Successful campaigners renewed from prior year• Campaign volunteers making their own gifts and• securing at least one other• Campaign volunteers making their own gift • commitment prior to Kick Off.• Increase in the average household gift amount.

Campaign Benchmarks (Cont.) (+)

• Campaign volunteers achieving Goal Buster status in the campaign.

• Prior year’s gifts that are renewed• Board members making gifts to the campaign• Board members serving as successful campaign

volunteers• Board members giving at the $1,000+ (CRT) level• Shrinkage in the amount pledged in the campaign

versus amount collected

Case Statement… (+)

• Validates the reason for the campaign -- to articulate the need for the money.

• Unite the campaign leadership in a common goal (producing the case) early in the campaign.

• Provide the basic campaign public relations statement.

• Motivate those being recruited as workers and those being solicited for contributions.

Case Statement… (Cont) (+)

• Who will benefit from the money raised?

• What is the organization (what makes it unique)?

• Where are the funds coming from (who will be contributing)?

• When is the money needed (sense of urgency)?

• Why it is important (what will happen without a successful campaign)?

What Makes A Good Campaign Case and Brochure… (+)

• It highlights opportunities -- showing what the organization can do (rather than what the organization needs)

• Picture the organization’s ability to meet society's pressing problems.

• It must be urgent. • It must relate to current societal issues and

problems.• It must feature a broad appeal -- so that many

people can relate to it and see, "What's in it for me?"

What Makes a Good Campaign Case and Brochure… (+)

• Shows previously contributed funds well managed.

• There must be current interest. The case must show what is being done now and will be done to meet tomorrow's needs.

• It must be brief. The reading/viewing time must not exceed three to five minutes.

Sources of Major Campaign Gifts (+)

• Organization’s donor lists• People of potential, identified from the

organization’s constituency• Key service club rosters (Rotary, Kiwanis, etc.)• Chamber of Commerce membership list• Industrial and business lists• Professional lists (such as medical, legal)• Large contributor lists secured from other

campaigns in the community• And more…

The Donor Cycle (+)

• Major Donor : Very involved with your organization and satisfied with its results of their giving. Chairman’s Round Table members generally fall in this category

• Donor : Involved with the organization and has given when opportunity is presented

• Potential Donor : One who has acquired knowledge of the organization and a desire to give

• Prospect : Shown interest in the organization and a willingness to give

• Suspect: Aware of the organization and may have a desire to give

Moves Management (+)

Operates year-round on a comparatively low key but continuing basis.

Sample Moves Management Action Steps (+)

• Sharing letters from individuals or families enrolled in the organization’s programs that match the potential donor’s philanthropic interests.

• Adding members to mailing lists for newsletters, invitations for Special Events, holiday cards, special updates from the President/CEO.

• Sending best wishes cards/gifts for new job, new baby, recovery from illness, community honor or recognition, new home.

Sample Action Steps (Cont.) (+)

• Tours of programs or sites that match interests.• Invitations to lunch with president or board chair.• Invitations to join peers for a special activity

focused on shared interests (sporting event, play golf, a night at the theatre/symphony).

• Small surprise gifts for holidays or special occasions.

• Complimentary passes for the branch for them or their friends.

• Seeking their advice.

Volunteer Recognition (After the Campaign) (+)

• Retention of successful volunteers increases dramatically with a communications plan designed to keep campaigners informed of and involved with the organization throughout the year.

• When thanking campaigners for payments, make certain you recognize volunteer efforts as well.

• Send periodic reports about the uses of campaign dollars.

• Consider a “reunion” picnic in the summer

Thanking Campaign Donors (+)

• Donors should be thanked a minimum of seven times for each gift.

• Donors can never be thanked enough for their sacrifice and demonstrated commitment to the organization.

• Nothing ensures a high percentage of retention more than a commitment to timely and effective acknowledgments.

Vice President, Jeffrey Byrne & Associates, Inc.

• Over 35 years in Healthcare--15 years as a CEO

• President of 2 hospital foundations 

• Led 3 successful Capital Campaigns

• 30 plus years of Volunteer experience with United Ways, YMCAs and other service and educational organizations.

Thomas Murray, FACHE

At the Starting Line of Planning a Campaign…

• Define Project

• Develop Case

• Develop Budget

• Measure Internal Readiness

• Measure External Readiness

• Decide on Outside Counsel

Six Criteria for Success

• A Case that is Valid, Realistic, and Universally Accepted

• Commitment by the Organizational Leaders

• Involvement by the Community Leaders

• Strategy (including proper cultivation) to Obtain “Pacesetting” Gifts

• Proper Planning

• Proper Timing

Report and Action Plan

• General Findings

• Observations and Conclusions

• Summary of Board Survey

• Recommendations for Action

• Fundraising Potential

• Campaign Approach/Strategy

• Confidential Information

Elements of a Community Readiness AssessmentSM

Ingredients For Success

• Solid infrastructure

• Campaign plan

• Volunteer leadership

• Pre-campaign planning

• Board commitment

• Staff support

• Fund raising counsel

Campaign Organization

Fundraising Counsel Board of Directors Executive Staff

Steering Committee

Campaign Treasurer General Chair Inner Family Chair

Lead/Advance Gifts

Pacesetting Gifts

Major Gifts CommunityGifts

Prospect Committee

Ad Hoc

Other

PR/

Special Events

Speakers

Bureau

Volunteers Can Expect

• Job Description• Clear Expectations Up Front – From Both Parties• Goals / Target• Schedules & Reminders• Progress Reports• Help, Encouragement, a Sense of Achievement

and Feeling of Success• Recognition• Resources – Project Information, Contact

Information, Training• A clearly identified contact person

Professional and Support Staff

• Day-to-day campaign operations- Schedule meetings- Produce materials, bills, reports, etc., on a timely basis- Assemble Materials

• Manage campaign details - Make meeting reminder calls- Prepare solicitor packets- Stuff envelopes

• Establish and manage systems- Maintain secure data base and contributor records

• Coordinate with campaign counsel• Tell the STORY and accompany volunteers on calls• Support volunteers at every level of the campaign

The Prospect Committee

• Most effective – and personal – way to rate

prospects

• “Secret” committee that works early on

• Those “in the know” in the community

• Fast-paced, highly facilitated process

• Work in sessions over several days or weeks

• Rate propensity to give and to volunteer

In general…• Lead gift should be at least 10 – 15% of total

(may be – or need to be – 25% to 1/3)

• Top 10 gifts should provide 40% of total

• You need 4:1 to 2:1 suspects to gifts

How Your Campaign Plan Translates To Your Gift Chart

Sample Gift Chart - $3,000,000 Goal

Number of Gifts

Gift Range Total

1 $450,000 to $500,000 $500,000

3 $100,000 - $449,999 $800,000 - $1,250,000

6 $50,000 - $99,999 $1,100,000 - $1,850,000

12 $25,000 - $49,999 $1,400,000 - $2,450,000

25 $5,000 - $24,999 $1,525,000 - $3,075,000

Numerous $4,999 and below

The Inner Family

• Definition

• The importance of the Inner Family

• Conducting the Inner Family gifts phase

- Recruiting the Chair

- Recruiting the Committee

- Appraisals

- Solicitation….A campaign within a campaign

• Reporting the Inner Family

Fundraising Trends

• Generational Giving

• Youth In Philanthropy

• E-fundraising and Social media

Generational Giving

Great Generation (81 and older): More likely to give to religious purposes than members of the Boomer generation.

Silent Generation (64 – 80): More likely to give in areas where the government does not provide.

Baby Boomers (46-63): Interested in giving to efficient and effective organizations. Want to know how donations are spent.

Gen X (45-29): Tend to favor international causes and education over arts and health.

Millennials (28 and under): Motivated to give by desire to make the world a better place. Give to social causes and where there is an opportunity to volunteer.

E-Fundraising and Social Media

•Facebook

•LinkedIn

•YouTube

•Pod Casts

•Twitter

•Flickr

•Blogs

•Website

Tools

Fundraising Best Practices

1. The campaign organization and strategies are based on financial potential.

2. The Inner Family must give first and set the example and tone. The campaign should only be announced after the Inner Family has given. Two goals should be set: a financial goal and 100% participation.

3. Recruitment goes from the top down. The leaders of an organization must be at the top of the campaign organization.

Fundraising Best Practices

4. One phase of recruitment does not start until the phase behind it is complete.

5. Given enough time, recruitment is best when done person to person, and we ask volunteers to recruit no more than 5 people.

6. In most cases, the campaign should be conducted in a decreasing order. Larger gifts should be sought first, medium gifts second and smaller gifts last.

Fundraising Best Practices

7. The most effective solicitation is conducted person- to-person, in teams of two, and peer to peer.

8. Prior to solicitation, the volunteer must first make a pledge. The results will be much greater when there are no exceptions.

9. Results are always greater when a prospect, at all levels in the campaign, is asked to consider a specific amount.

Fundraising Best Practices

10. All volunteers deserve: a written job description; proper orientation and training; staff encouragement and assistance; communication on an ongoing basis; and recognition.

11. When volunteers become closely involved by stopping by the campaign office and being updated on almost a daily basis, successful, fun and exciting campaigns happen!

Fundraising Best Practices

12. A professional campaign office is best. We encourage hiring a paid staff, enacting good office practices, respecting confidentiality, and exhibiting a friendly, helpful atmosphere. Campaign materials need to be professional, stressing the donor’s point of view and asking for a gift.

13. A calendar with recruitment and progress deadlines is essential.

14. Volunteers, donors, and staff must be made to

feel appreciated at all times. Without their participation, a campaign will not succeed.

Don’t Just Survive, Prosper! Fundraising and Campaigns in Challenging Times

Questions and Wrap Up…

YOUR ACTION PLAN: Write down three to five steps you plan to take as a result of having attended this workshop.

Don’t Just Survive, Prosper! Fundraising and Campaigns in Challenging Times

Thank YOU!

Jeffrey Byrne & Associates, Inc.816.237.1999800.222.9233 www.fundraisingJBA.com