Preparing Non-profits For Success

Governor’s Grants Conference September 12, 2011

The Community Foundation of Anne Arundel County (CFAAC)

• Founded in 1998• 1 of 14 Community Foundations in

the State of Maryland• More than $3 million in grantmaking

over the last 5 years• Small, growing non-profit

Mission and Vision of CFAAC

• Connecting people who care to contribute to causes that matter

• To achieve a lasting positive impact on our community through fostering philanthropy

• Care. Connect. Contribute.

What is a Community Foundation?

• A community foundation is a philanthropic vehicle that combines the charitable gifts of many to provide leadership and financial leverage in addressing the current and future needs of the community through various grant making activities designed to improve the lives of the citizens of that community.

• Their board’s are comprised of people from the community

• There are approximately 700 community foundations in the U.S. and 13 in Maryland

Today’s Discussion: How to thrive in this difficult economy?

• What do you want to take away from today’s discussion?

• What is your biggest challenge?• Hope is NOT a plan!

Agenda

• Internal Review – Who are you? Where are you going?

• External Review – What is the landscape? Who is your competition?

• Strategic Planning• Fundraising • Role of the Board• Q&A

Internal Review

• What is your role in your community?• What are your assets and

capabilities?• Who do you want to be?• What are your values as an

organization?

Conduct and In-depth Financial Analysis

• What are you key products and/or services?

• How much do they cost you to offer/manage?

• How much revenue do they generate?• Can you diversify your revenue sources

and keep to your mission?• Is your business model sustainable?

Tough Decisions

• What are your loss leaders? (a product offered at a low or discounted price to stimulate other purchase – in our case other types of involvement)

• What activities/products/services should you cut, de-emphasize, or pass on?

• Do you have the right staff in the right positions?

• How can you be more efficient?

External Review

• Do some research of the industry and your market

• What are the opportunities?• What are the threats?• Who are your main competitors and

what are they doing to respond?• How can you differentiate yourself?

Strategic Planning: 4 Elements of a Common

Process

Analysis Synthesis Programming Implementation

• External environment• Internal assets, capabilities and resources• Quantitative and qualitative

• Brainstorming/ creativity • Financial/other analysis• Vision, mission, values, goals• All/subset of the “5 Diamond” model elements

• Translation into specific initiatives aligned with the strategy

• Align structure, systems, staff, skills with new strategy• Reinforce with new performance metrics and contingency plans

“Divergence” “Convergence”

Porter’s 5 Forces

2. Vehicles• Internal development?• JVs?• Licensing/franchising?• Acquisitions?

3. Differentiators (value proposition)• Image?• Customization?• Price?• Styling?• Product reliability?

1. Arenas• Products?• Market segments?• Geographies?• Technologies?• Stages of the value chain?

4. Staging• Sequence of moves? • When (how fast)?

5. Economic logic (source of competitive advantage)• Premium pricing through superior products, service, brands, etc.?• Low cost through superior processes, scale, scope, etc.?• Inimitable assets, capabilities, relationships, etc.?

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CFAAC 2011 Focus Care - Connect - Contributecaring community to enhance the quality of life for all. VISION: To achieve a lasting positive impact on our community through fostering philanthropy.

MISSION: Connecting people who care to contribute to causes that matter.

Values

Strong, Effective Local Nonprofits

Recognized Community LeaderPermanent base of charitable dollars.

Goals

Strategies

Excellent Donor Service

Trusted Visionary Leader Innovative Responsive Collaborative

Impact

Expand donor communication and tools for giving

Grow fee-based services for family & corporate foundations

Enhance investment management services

Expand free and fee-based capacity building services

• Increased average fund size from $44K to $100K

• Increased annual revenue• Improved donor satisfaction• Shorter response time for

donor inquiries/transactions

• Increased total grant making from $700K to $1 million/year

• Unrestricted grant making increased from $100K to $250K

• Total assets grew from $2 million to $8 million

• Increased known legacy gifts from $2 million to $4 million

• Increased total funds from 50 to 100

• Advanced key measures in needs assessment

• Needs assessment used by other funders and agencies

• Increased number of donors giving through CFAAC

Grow Impact Funds (2 to 5) and capitalize ($500K per fund)

Increase operating support to vital nonprofits

Target high net worth individuals to contribute directly to our mission.

Create Legacy Society and partner with prof. advisors to promote legacy giving

Solicit private foundations to support our mission.

Define, track and measure success of grants

Expand needs assessment to cover all impact areas

Increase community dialogue and problem-solving

Fundraising

Is this how you feel about it?

Inspiration

• Fundraising is the gentle art of teaching the joy of giving.

• In good times and bad, we know that people give because you meet needs, not because you have needs

• You make a living by what you get. You make a life by what you give. – Churchill

• No person was ever honored for what he received. Honor has been the reward for what he gave.- Calvin Coolidge

The Science of Fundraising

• Identify your target audience• Tailor your message to your target

audience• Develop a prospect list and prioritize• Focus on individuals• Set goals - # of meetings per month,

# of new gifts, total amount raised• Ask! Ask! Ask!

Moves Management

“The moves concept focuses major gift fund raising on changing people's attitudes so they want to give. To do this, we take a series of initiatives or moves to develop each prospect's awareness of, knowledge of, interest in, involvement with, and commitment to the institution and its mission.” –David Dunlop

• A disciplined and intentional process�• Using “moves” and “managers” to keep donors �

and donor prospects invested in a nonprofit organization.

“Moves”

The Process –6 Pivotal Steps• Review the prospect/donor relationship with your

organization• Plan the most beneficial next moves (donor-centered)• Coordinate and check plans with others involved• Execute the moves• Evaluate what transpired• Report back to the individuals involved

SUCCESS is based on the…• Quality• Frequency• Continuity

Board Members

• Small shop vs. big shop• Size • Diversity• Clear roles and responsibilities• Training and orientation

The Role of Board Members

• Governance• Donors• Referral Agents• Advocates

Conclusion

• Take a close look at yourself and what is going on around you

• Develop a plan• Fundraising is sales• Determine the best role for your

board based on your organization and its’ needs

THANK YOU!

For more information please contact me:

Bess Langbein, Executive Directorbess@cfaac.org or 410-280-1102