1. business and industrial

Overview: Basic Steps in a Campaign
•
•
•
•
•
•
•
•
•
Set goals based on organization’s strategic goals
Select steering committee
Identify roles and responsibilities for each person
Set up record system and recognition system
Develop case statements (why should anyone give?)
Carry out research on potential donors
Find ways to meet them
Engage them with organization
Invite them to help support specific activities that
interest them
• Recognize and thank them, keep them involved
• Repeat, evaluate and refine this cycle every year
The Board’s Role in
Fundraising
Thomas P. Holland, Ph.D., Professor
UGA Institute for Nonprofit Organizations
Getting the Organization Ready
1. Fundraising must be based in
the organization’s strategic
plan. Each strategic goal
becomes a fundraising goal
too.
2. The board oversees this whole
process of planning and
implementation.
A Strategic Plan addresses
• What are the most important ways we can
strengthen this organization and its programs in
the coming 3-5 years?
• Answers depend on careful analysis of internal
and external factors.
• Challenge of mission-drift, self-perpetuation for
its own sake.
• Clear priorities strengthen commitment and
effectiveness throughout organization.
• Provides foundation for all fundraising
Strategy vs. Operations
• Most board and staff members (like most
people) come from positions of
responsibility for operational decisions.
That’s familiar territory.
• Most board and staff members (like most
people) have little understanding of
or experience with governance, strategic
thinking, or planning for the future.
• As a result, discussions slide into familiar
territory-- operations.
• Staff unwittingly foster such slides by
providing more operational details.
A Strategic Plan is
• Clear statement of the major goals and
priorities of an organization that guide all
decisions toward achieving its mission.
• Specification of the main values and
directions as we approach our
environment and constituencies, how we
invest our resources for maximum results
• Demonstration of who we are,
distinguished from others in our
environment
What is Strategic Planning?
Strategic Planning is a Process that:
• Is filled with decisions and actions that shape and
guide what an organization is, does, and why it
does it
• Requires broad-scale information gathering
• Explores alternative directions for the organization
• Emphasizes its future
• Results in a tangible written document that guides
all organizational actions, including fundraising
Why Participate in a Planning Process?
•
•
•
•
•
•
•
•
•
•
•
For sharper organizational focus
To concentrate on priorities and key strategies
For a systematic approach to future thinking
To compete in marketplace more effectively
To determine our priorities
To evaluate organizational effectiveness
To clarify vision, mission, critical issues, and
strategies
To prepare for possible partnerships
To provide guidance to staff
To stay on track during leadership transitions
To demonstrate accountability
Why be Strategic?
• To find best approach(es) to
implementing the mission
• To identify organization’s unique niche
for success
• To build on assets
• To identify and correct weaknesses
• To anticipate problems and be
prepared to deal with them
• To take advantage of opportunities
Where are We Now?
• Is the organization clear about its primary
purpose?
• Are new strategic approaches needed for
implementing the mission?
• Can existing strategies be implemented
in a more effective way?
• Are organizational goals and outcomes clear?
• Should any of our major programs be eliminated?
• Is there a need for new programs and services?
• Is it necessary to consider a totally new approach
to our mission?
• Should we consider a merger or collaboration?
Funding the Planning Process
•
Money Is Needed To
• Support information gathering, analysis, and research
• Contract for consulting and facilitating services
• Cover logistical expenses
•
Develop a Budget
•
•
•
•
•
Type of process chosen
Size and complexity of organization
Number of people involved
Geographic spread of mission
If Funding is Not Available, we must first
• Create a plan to access funding
• Seek donated services and meeting space
• Look to board for financial support or planning
Are Our Board and Staff
Members Committed?
The Board
• Commitment absolutely essential
• Should have willingness to
– spend time planning
– support expenses of planning process
– monitor implementation of plan’s strategies
and goals
– Participate in asking for contributions,
opening doors, making connections
Are Board and Staff Committed? (cont.)
The Staff
• Commitment essential
• Should have willingness to
–spend time planning
–earmark funds for planning process
–monitor implementation of strategies
and goals of plan
–participate in gathering information
–commit to new and diverse roles and
responsibilities
Are Board and Staff Committed? (cont.)
•
Board/Staff Partnership
•
•
•
•
Determine how to access needed information
Share research and interview assignments
Discuss issues that arise in planning
Communicate disagreements and differences
of opinion
Who Should Facilitate the Process?
•
Should a Consultant Be Hired?
• Assess whether there is a need
• Determine if funding is available
• Seek referrals for consultants who work
best with specific organizations
•
Should a Board Member Act as Facilitator?
• Caution: Board members are not the best option
• If board member facilitates, he/she must
– remain objective
– limit insights and ideas
– act as catalyst in planning process
The Board’s Role
•
•
•
•
•
•
•
•
•
•
•
•
Commits to planning
Ensures adequate resources
Decides on approach
Coordinates steering committee
Helps prepare and approves “plan to plan”
Ensures full board participation
Conducts board self-assessment
Reviews and approves vision, mission, critical
issues, and tasks
Makes final decision on approving plan
Ensures plan become operational
Ensures plan is fully implemented
Oversees accomplishment of goals
Chief Executive’s Role
• Seeks board’s buy-in for planning
• With the board, ensures adequate resources
• With the board, decides on planning
approach
• With the board, appoints steering committee
• Participates in “plan to plan”
• Ensures participation of staff
• Informs staff; encourages feedback and
input
• Prepares operational plan with staff
• Evaluates accomplishment of strategies,
goals, and objectives
• Regularly reports status to board
The Role of Staff
Staff <20:
• Expect participation from every staff member
Staff >20:
• Create leadership team more directly involved in
planning
Staff will be involved with
• Analyzing internal capacity
• Formulating and distributing questionnaires
• Organizing data collection
• With chief executive, identifying critical issues
(vision, mission, strategies)
• With chief executive, preparing operational plan
• Implementation of plan
Involving our Stakeholders
•
Who are they?
• Clients, staff, funders, members, community
•
What can they add?
• Involvement with internal/external assessments
• Outsiders’ perspectives
To interest potential supporters, we
must be very clear about
• What exactly is our mission, and how will we
carry it out?
• How do our various constituencies view our
mission? Will they support it?
• How well have we identified and communicated
our goals?
• What programs & services will best carry out our
mission?
• How will we deliver our services in ways that are
positively noticed and supported?
• How will we organize our efforts to be successful
in accomplishing our goals?
• How will we ensure resources to sustain our
programs?
Importance of an external orientation
• Most staff are internally focused, concerned
with quality of projects and programs.
• The external environment is increasingly
complex, competitive, and demanding about
accountability and responsiveness.
• Our intended audiences’ points of view,
needs & interests, are vital to our success.
• Other organizations that are more attentive
and responsive will successfully compete for
our constituencies and resources.
• So we must define our audiences and find out
what each group wants, in what forms and
ways of delivery.
The external environment is changing
• People are less loyal to old, familiar organizations;
brand loyalty diminishing
• People have fewer close friends or long-term
commitments; more transience
• Average age is increasing
• People distrust large organizations, and interest in
joining organizations as formal member is declining
• Investment in some civic activities has diminished
• Technology emphasizes quick responses
• Choices among options, brief engagement, and
privacy are valued
Trends affecting the stakeholders
of every nonprofit
• The external environment is increasingly
turbulent, unstable, changing
• Constituents and supporters want more
control, and loyalty cannot be assumed
• Unplanned networking is less reliable as
source for money, volunteers, publicity
• Public policies are changing
• Demands for accountability are rising
• While some nonprofits are paying attention to
such changes, most are not
Key Questions about
stakeholders’ needs and interests
• Who are our target audiences (individuals and
groups we have/ want to have involved)?
• What are the key segments (sub-groups) within
those groups?
• What are the needs/ interests of each?
• What business do they think we’re in?
• How much interest or awareness do our activities
generate among them?
• How satisfied are they with our output? Good fit?
• What are our competitors doing about these
issues?
• Do we have any distinctions that allow us to be in
a more attractive position than our competitors?
Strategy must match conditions
of the organization’s market
• Are our mission and values congruent with
our consumers’ and sponsors’ interests
and concerns?
• Do we have programs that will accomplish
our goals effectively?
• Do we have the skills, commitments, and
resources to deliver?
• What are our best, most feasible directions
for the coming years?
Concentric circles of interest in a
nonprofit organization
Board, staff,
Volunteers
Donors
Clients
People with similar interests
Constituencies and organization must
share in the mission and goals
• If they are based upon constituents’
concerns and interests, there will be
energy and resources to achieve shared
goals.
• The organization must know what criteria
stakeholders are using to judge the
success of its performance.
• Activities must be consistent with shared
core values or there will be little chance of
achieving stakeholder satisfaction.
Effective reciprocal relationships
with constituencies
• Each group is necessary for the other to succeed.
Both must receive adequate benefits in order to
be successful.
• Organization must involve target audiences to
accomplish its goals. Donors, volunteers,
members must be empowered to achieve their
individual goals through involvement.
• Messages of encouragement, solicitation, and
benefit are sent by those inside the organization
to those outside, while messages of acceptance,
displeasure, and encouragement are sent from
those outside to those within the organization.
Appealing to our constituencies
• There must be some degree of current
interest in the topic for people to respond to
overtures from the organization
• Information presented by the organization
must be compatible with listeners’ prior
values & attitudes for them to be receptive
• People respond in differing ways to same
material, and their response depends on their
beliefs and attitudes.
• We must understand each audience’s
interests and tailor approaches to match.
• Example: packaging aspects of organization
to appeal to donors (naming opportunities)
Tools for understanding our
constituencies’ interests
•
•
•
•
Focus group discussions
Analysis of demographic & census data
Key informants
Surveys of consumers, sponsors, referral
sources
– telephone
– in-person interviews
– mailed questionnaires
Identifying useful strategies
• Can we fine-tune our current operations? Work harder
at what we’ve been doing?
• Should we shift our focus and resources to address an
emerging opportunity?
• Can we convert a barrier or threat to an opportunity?
What would it take? Can we do that? What resources
would be needed?
• How will our answers address the factors raised in our
SWOT analysis?
• How will answers foster constituency engagement and
loyalty?
• What are some specific aspects of our organization and
programs that would appeal to what kinds of donors?
How should we spend our money?
• Some projects may operate at a loss
because of centrality to our mission
(core)
• Some projects not core to mission but
money-makers may be accepted to offset
losses in others (cash cows)
• We may invest in growth of programs in
hope they will break even in the future
(venture capital)
• Some projects may be discontinued
because they no longer meet the needs for
which they were designed (dogs)
Specify multi-year financial plan
and income needs
• Options (on-going & new programs)
– Priorities
– Estimated expenses
• Estimated income
– Renewable income
• Last year’s gifts minus non-repeatable gifts
(Grants, personal gifts, contracts, fees, earned income)
– New income
• Use historical rate of growth, OR combine with
new fundraising efforts
Key Steps in Fundraising
• The board takes leadership, with staff
support.
• Begin with strategic goals for the
organization, not with whatever funding
sources seem available.
• Search for sources and people who are
interested in and share your goals.
• Develop relationships with them.
• Find ways to engage them with your
organization before asking for anything.
• Results are directly correlated with the extent
of engagement. There are no shortcuts.
Specifying the Fundraising Plan
• Identify the steps and resources needed to
achieve each strategic goal
• Formulate them clearly in terms that interest,
attract, and engage our constituencies, including
staff, volunteers, sponsors, others
• Specify roles and actions each can take to move
forward, including target audiences and strategic
goals that will interest each.
• Take advantage of constituencies’ different
talents, interests. Match task with talent.
• Prepare people for campaign tasks.
Components of an Effective
Fundraising Plan
• Gather information on market conditions
• Identify avenues to donor acceptance
• Every member of our organization must
approach work in terms of engaging
constituents
• Emphasize that accomplishments of this
organization are due to constituents’ efforts
• Specify goals and action steps
• Monitor results and publicize them
• Modify programs (and people) that do not
engage constituents and produce results
More Key Components
• Everyone must be fully committed to meeting
constituents’ interests, from board and top
management on to all staff.
• Acknowledge our strengths and weaknesses
• Always tell the absolute truth about the
organization and its programs. Integrity
builds trust.
• Explain actions in light of mission and goals
• Put our explanations in constituents’ terms
• Focus on the key audience segments critical
to the organization’s success in reaching
each strategic goal
Emphasize Friend-Raising
• There must be some degree of current
interest in the topic for people to respond to
overtures from the organization.
• Information presented must be compatible
with listeners’ prior values and attitudes for
them to be receptive.
• People respond in differing ways to the same
material, and their response depends on their
beliefs and attitudes.
• Listen to them. Ask questions and seek to
understand each one’s interests. Tailor your
approaches to match them.
Be Clear about How you
Add Value for Sponsors
• Each party in the transaction should sense that they
are receiving more than they are giving up.
• The nonprofit must understand what each target
audience wants and how it truly provides them their
expected benefits.
• The nonprofit must satisfy efficiently and effectively
its half of the transaction
• Are we truly adding value for them? Evidence?
• By building on its strengths, the organization can
better serve constituencies and strengthen their
loyalty.
Develop the Case for Giving
on each strategic goal
• Begin with the why: what is our mission?
• Then state the what: what do we want to achieve?
– Draw key goals from strategic plan
• Then state the how: how will this new project
meet a goal and fulfill mission?
• Then who: who we are and how well we have
been serving our constituencies.
• Finally, what specific action do you want the
reader or listener to take?
• Frame answers in donors’ terms and interests
• Boil it all down to one page.
• Practice using it in conversations.
• Draw on alternative cases depending on listener.
Remember about Giving and Asking
•
•
•
•
•
People give money because they want to.
People don’t give unless they are asked.
People give money to people, not programs.
People give money to opportunities, not deficits.
People give to successful organizations, not to
distressed ones.
• People give money to make a change for the
good.
• People give on their timetable, not ours.
More Points to Remember
• We cannot do everything or talk to every person,
so must prioritize.
• All new efforts must be evaluated based NOT
solely on their potential as programs but also on
their probability of success in gaining financial
support.
• Never neglect current donors to go after new
donors.
• Plan for sustainability (e.g., sequencing or
phasing in efforts over time).
• Keep good records.
Basic Steps in Fundraising:
Developing Friends into Sponsors
• Board identifies goals and priorities for new funding.
• Board and staff demonstrate commitment by 100%
giving.
• Each ones shares enthusiasm with friends.
• Identify and cultivate relationships with new
potential donors.
• Invite them to get acquainted with organization.
• Host special events to showcase projects & people.
• Ask friend for support for aspect of interest or
introduce to Executive or Chairperson for the ask.
• Follow up with appropriate thanks.
• Staff supports board in these efforts, rather than
doing it all for them.
Prerequisites for our People
• If your board and senior staff are not already
taking leadership in fundraising, the FIRST task
is to solve that problem.
• Willingness to learn and try are the beginning
steps. Skill comes with practice.
• Develop clear case statements for each goal
and practice using them in conversations.
• Everything else depends on these foundations.
• Everybody must be involved in some way, either
in direct solicitations or in support roles.
• No excuses allowed for anybody.
Common Excuses:
• I’ll do anything but raise money.
• Nobody ever said raising money was part of
serving on this board (or working in this
organization).
• My time is my gift.
• We deal with substantive issues, not with raising
money.
• I’m too busy.
• I don’t want to ask my friends for money.
• I can’t stand being turned down.
• I’m just not good at that sort of thing.
• I’ll get around to that later.
Such Avoidances of Responsibility
Must be Resolved
• The board is ultimately responsible for the well
being of the organization in every area.
• Other competitors are moving ahead with raising
money, taking your potential donors.
• People have various talents, all of which are
needed by the team.
• Fundraising can be learned, practiced, and
refined.
• It can be fun and satisfying.
• Our survival as an organization depends on it.
Set Clear Expectations
• Include fundraising in job descriptions for board and staff
– Evidence of commitment to values and mission
– Attendance and active participation
– 100% giving
– Public representation and advocacy for organization
• Fill gaps in group’s skills by
– Targeted recruitment
– Education sessions on fundraising, communications,
volunteering
• Engage volunteers in special projects
– Bring in needed skills
– Watch for potential nominees for deeper engagement
• Conduct regular evaluations to learn and grow
• Demonstrate accountability to sponsors
– via financial reports and individual communications
The Board’s
Fundraising Committee
• Oversees the preparation of a comprehensive
plan for review by full board
• Ensures a realistic appraisal is made of potential
support and reasonable goals are set
• Develops consistent messages (cases) for all to
use
• Participates actively in identifying prospects,
cultivation, asking
• Enlists every other board and senior staff
member in specific tasks, events, recognition of
donors
• Reminds everyone to give and to complete
assigned tasks
• Evaluates efforts for future improvement
Support Roles: Something for Everybody
• Everyone helps develop volunteer opportunities and
engage people in them
• Host receptions or events where CEO or Board Chair
gives brief presentation
• Introduce friends to CEO, Board Chair, or other
leaders
• Identify and do background research on potential
donors and doorways
• Offer to speak at civic organizations
• Help draft case statements, press releases, other
approaches to public awareness
• Develop donor appreciation and recognition plans
• Search for ideas and people with expertise and
bring to board education sessions
Start Small, Build Pyramids
• Every member gives according to means
• Each invites friends to events and asks them
to bring some amount for this organization
• Maintain database on all givers
• Identify those who give larger gifts
• Take them to lunch, explore their interests
• Match their interests to organization’s
needs via volunteer roles
• Ask them to invite their friends to event
next year
• Try creative, alternative events
The Board Member’s Checklist
• Do I have a clear picture of the mission, priorities
and needs of the organization?
• Do I really understand and support the case, why
someone should support this organization?
• Do I contribute to the extent of my means?
• Do I offer additions to the list of prospects?
• Do I share in cultivating prospects?
• Do I make introductions for others to make solicitations?
• Do I accompany others on solicitations?
• Do I write follow up and thank you letters?
• Am I prepared to make solicitations myself?
• Do I do what I say I will do?
Building Capacity and Skill
• Talk with people in other organizations that have
success with fundraising.
• Visit the Foundation Center Library
(Hurt Building, Main floor, 5 Points, Atlanta)
for more other materials and resources
(http://fdncenter.org)
• Use prepared learning resources
– Ga. Center for Nonprofits offers short
workshops (www.gcn.org)
– BoardSource has several good booklets and
educational resources such as “Fearless
Fundraising” (www.boardsource.org)
At some point, someone has to
ASK
• You are offering them opportunities to do good.
• Not everyone has to do every aspect of the campaign,
but someone must be ready and willing to do the ask.
• Time it to come after you already are well acquainted
with the person and s/he with you and your
organization.
• Match ask to their interests and their resources.
• Ask for two things: money and help with a task
• Ask and then shut up. (Don’t fill the space with
nervous chatter.)
• Respond to questions and offer alternatives.
• Thank them several ways, regardless of results,
building relationship for the future.
Prerequisites to the ASK
• You have the right prospect.
• You have cultivated a good relationship with
the person, and s/he is familiar with your
organization.
• You know the person’s interests well and
have framed your approach to them.
• You have an appointment to discuss the
specific opportunity and make the ask.
• You know the amount to ask for and the right
task needing their expertise.
• You are prepared with ways to recognize the
gift and to make use of their help.
Stewardship of Gifts
• Thank the donor
• Find appropriate ways to recognize and
publicize the gift. Ask their preferences.
• Use the money as the donor intended
• Report to donor periodically
• Continue to engage him/her with organization
• Build long-term relationship of trust
Maintain records on donors
•
•
•
•
•
•
•
•
Name, address, phone
External, internal affiliations
Events attended
When/how often asked for gift?
Amount donated
Purpose of past gifts
How was donor solicited?
Suggestions for next contact
Improve by evaluating experiences
• What were the major factors that
influenced the results we encountered?
• What were our goals, assumptions,
and actions going into the
experiences?
• In what ways did we influence the
sequence of events?
• What could we have done differently
to make the outcome more positive?
• Lessons we should take into the
future?
More Questions for Discussion
• Are our goals and case statements
compelling?
• Are we identifying and cultivating the
most likely givers?
• Is our time being used well?
• Are charges to individuals and teams clear
and specific?
• Are we getting appropriate background
information clearly linked to our tasks?
• Do we have shared assumptions,
expectations, & priorities for our efforts?
• Have we matched interests with tasks?