Young Nonprofit Professionals
Network Learning Circle
The Essentials of Fundraising &
Donor Development
Week 1 - Developing a Fundraising Plan
Jessica Haynie
September 27, 2011
Today’s Agenda
• Introductions
• Overview of Class
• Exercise
• Presentation
• Review Homework
• Q&A
2
Overview of Class
• Combination of exercises, presentations,
discussions, and homework
• Week 1 - Developing a fundraising plan
• Week 2 - Evaluating fundraising program
• Week 3 - Prospect research (Identification &
Qualification)
• Week 4 - Cultivation & Solicitation
• Week 5 - Stewardship
• Week 6 - open topic
3
Learning Circle Objectives
• Learn how to develop a fundraising plan
• Learn how to evaluate current fundraising program
• Become more comfortable and clear in giving the
elevator pitch
• Understand the key phases in donor development
• Start identifying and organizing top prospects and
suspects
• Develop a telephone script and test it out
4
Exercise
• The elevator pitch
• Don’t just repeat your mission statement
• Tell us what you do and who you do it for
• Share a quantitative result
• Provide some perspective
• Spell out the opportunity
5
Exercise
• The elevator pitch
• Find a partner
• You have 2 minutes to make your pitch and 3
minutes to answer any questions your partner may
have
• Switch and repeat
• Take notes on went went well, what didn’t go well,
things you wish you knew, did you run out of time
6
Why is it important to have a
fundraising plan?
• To help you recognize what you have to work
with
• To define what you need
• To select your target market(s)
• To choose your fundraising strategies
• To organize the steps required to put the
fundraising plan in place
• To demonstrate to the outside world that you
are organized and businesslike
7
What are the essential components
of a fundraising plan?
• Mission/case statement
• Fundraising goals
• Gift range chart
• Strategies with action steps
• Stewardship plan
• Calendar
• Budget
8
A case statement is…
• A clear statement of the need your
organization addresses, how you address it,
what makes you unique and how others can
help
• A document you can use in drafting all your
other publications and presentations
• An item that requires your board and staff to
communicate with each other about the
central vision of the organization
9
A case statement is not…
• Everything there is to know about a specific
program
• Something the board uses to show off its
talents
• A long-winded grant proposal
• A work of fiction
10
Components of a case statement
• The mission - Why do you exist?
• History/accomplishments - Where have you been?
• Population served - Who do you serve?
• The problem - What is the problem being addressed?
• Your strategy - How do you address this problem?
• The goals - What do you want to accomplish?
• Development - What will you do in the future?
• Staff and governance - Who runs and oversees your
organization? What qualifies them?
• Finances - Is your organization fiscally responsible?
• The ask - What do you need funding for? How will the donor’s
investment be used?
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Good case statements generate:
• Excitement (positive emotional response)
• Sense of proximity (nearness to cause)
• Sense of immediacy (right timing, importance,
urgency)
• Sense of hope (optimism, future orientation)
• Meaning (perception of match to values, desirable
benefits)
• Sense of reasonableness (feasible, benefits outweigh
costs)
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Identify your goals
• What does your organization need to fund?
Programs, everyday operations, capital
enhancements, building an endowment
• How much funding do you need?
• Who will it come from? Individuals, foundations,
corporations?
• Are you looking to grow your program or just maintain
it?
13
Sample gift range chart for
$100,000 annual fund goal
Gift Range # Gifts # Prospects $ Raised
$5,000 2 10 (5:1) $10,000
$2,500 4 20 (5:1) $10,000
$1,250 12 48 (4:1) $15,000
$1,000 15 60 (4:1) $15,000
$500 20 60 (3:1) $10,000
10% of Donors 60% of Goal
$189 106 318 (3:1) $20,000
20% of Donors 20% of Goal
$53 371 742 (2:1) $20,000
70% of Donors 20% of Goal
Total 530 donors 1,258 prospects $100,000
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The gift range chart
Gift Range # Gifts # Prospects $ Raised
5% of goal 2 10 (5:1) 10% of goal
1/2 above 4 20 (5:1) 10% of goal
1/2 above 12 48 (4:1) _________
________ 12+ __ (4:1) _________
________ ___ __ (4:1) _________
10% of Donors 60% of Goal
________ ___ __ (3:1) 20% of goal
20% of Donors 20% of Goal
________ ___ __ (2:1) 20% of goal
70% of Donors 20% of Goal
15
Develop your strategies & action steps
Strategy Sub- Goals Objectives Action Steps By when By who
strategy
Membership Win, Keep, Specific $ Sub-goals Specific activities Ongoing or DD, ED,
Lift goal to raise $ by specific Board,
date? Vol?
Major Donors
Board
Members
Special Events
Corporations
Foundations
16
Develop your strategies & action steps
Strategy Sub- Goals Objectives Action By when By who
strategy Steps
Membership
Major Donors
Board
Members
Special Events
Corporations
Foundations
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Why focus on individuals?
18
Giving USA: 2010 Charitable Contributions
$290.89 billion
5%
14%
Corporations
8% Foundations
Bequests
Individuals
73%
19
The individual prospect
• Accounts for the largest portion of all
charitable giving
• Is more likely to seek involvement with
your cause and organization
• Long-term relationships are most likely
to occur
20
How to spend fundraising dollars?
• Three strategies
Win (acquire new donors)
Keep (retain donors)
Lift (escalate giving by committed donors)
21
Developing a stewardship plan
$1-$99 $100-$249 $250-$499 $500-$999 $1,000+
Thank you
letter X X X X X
Newsletter X X X X X
Emails X X X X X
Invitations to
events X X X X X
Annual Report X X X X
Phone call
thank you X X X
Personal thank
you note X X
Holiday cards X X
Annual visit by
ED X
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Developing a calendar
• Refer to the handout, but keep these
tips in mind
– Be realistic
– Instead of trying to do it all, do a few things
really well
– Keep non-fundraising activities in mind
when creating the calendar
23
Key components of a
fundraising budget
• Supplies (letterhead, envelopes, note cards, etc)
• Postage
• Design and printing of publications
• Travel
• Meals with donors
• Event costs
• Trainings and Conferences
• Salaries and wages
• Consultants or outsourced services
• Memberships/professional associations/publications
• Database
• Web-based fundraising and fees (ie credit card processing)
24
Homework
• Draft a case statement for your organization
• Print 2 copies and bring to class next week
• Be prepared to have it peer reviewed
25
Any questions?
Three Stones Consulting, LLC
Santa Fe, NM
[email protected] www.threestonesconsulting.com
315-729-3994
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