Afp Mn Speech Sept 2010 Updated

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Shaping the DevelopmentPlan in a Changing Philanthropic Landscape a presentation to the Lake Superior Fund Raising ExecutivesJohn A. Martin, CFREMGI Fund-Raising Consulting, Inc.www.mgifundraising.com 1-800-387-9840

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Begin with aPlanThe key to successful fundraising begins with a solid plan, and then working that plan. The presentation will stress not only the need for a diversified approach to fundraising but also the “Tips” involved in shaping the plan to develop a sustainable and competitive development program.www.mgifundraising.com 1-800-387-9840

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Diversify and explorealternativesWhy nonprofit organizations need to diversify their fundraising plansStrategies to create and shape a diversified fundraising planHow to apply different fundraising strategies to fit the needs of different funding sourcesHow to “tweak” the plan and rise “above the clutter” in a competitive and changing fundraising landscape www.mgifundraising.com 1-800-387-9840

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How did weget here and how do we move forward?Understand the philanthropic marketplace and the environment in which your organization competesChange the Paradigm and adhere to Best PracticesCreate a Culture of PhilanthropyAchieve Brand Pinnaclewww.mgifundraising.com 1-800-387-9840

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2009 charitable givingTotal = $303.75 billion ($ in billions)Source: Giving USA 2010www.mgifundraising.com 1-800-387-9840

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2009 Giving SummaryTotalgiving = $303.75 billion. Decrease of 3.6 percent (-3.2 percent adjusted for inflation).Individuals remain the single most important source.Individuals + charitable bequests = 83 percent of total.Foundation grantmaking = 13 percent of the total. About half of independent, community, and operating foundation giving is from family foundations.Individual + Bequest + Family Foundations = 89 percent.Corporate giving is an estimated 4 percent of the total.www.mgifundraising.com 1-800-387-9840

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Total giving, 1969–2009$in billionsInflation-adjusted dollarsCurrent dollarsRecessions in dark gray: 1969–70; 1973–75; 1980; 1981–82; 1990–91; 2001; 2007–2008www.mgifundraising.com 1-800-387-9840

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Giving by individuals,1969–2009$ in billionsInflation-adjusted dollarsCurrent dollarswww.mgifundraising.com 1-800-387-9840

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Types of recipientsof contributions, 2009 Total = $303.75 billion ($ in billions)www.mgifundraising.com 1-800-387-9840

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5 Most PopularCauses Americans Support (in billions)Religious or faith based ($100.95 – 33%)Education ($40.01 – 13%)Human Services ($27.08, 9%)Health($22.46 – 7%)Public Society-Benefit ($22.77 – 8%)2009 figures, Giving USA 2010www.mgifundraising.com 1-800-387-9840

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Changes in givingby recipient organizationCurrent $Estimated giving increased in subsectors associated withprovision of services to those in need. It decreased insubsectors where at least some funds are raised forbuildings, endowments, and other long-term purposes.Giving USA estimates growth in giving to: International affairs 6.2 percent Health 3.8 percent Human services 2.3 percent Environment/animals 2.3 percent Declines in giving are estimated for: Religion -0.7 percent Arts, culture and humanities -2.4 percent Education -3.6 percent Public-society benefit -4.6 percentwww.mgifundraising.com 1-800-387-9840

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Where Does PhilanthropyStand?An unstable economy has shaken both non-profits and their donors to the core.Stock holdings have radically declined in value with some companies losing up to 90% of their value. Every company and executive has been affected in some way.www.mgifundraising.com 1-800-387-9840

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The Past Projectsthe FutureCorporate giving is most immediately affected in an economic downturn: corporate foundations are funded with annual profits. Most corporate foundations have been affected by the economic downturn – the effects will be felt for years to come.Foundation giving tends to scale down over a three year period: giving budgets usually represent a three year rolling average.Individual giving has the greatest resiliency and donors respond in difficult times.www.mgifundraising.com 1-800-387-9840

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Corporate Giving andToday’s Economy45% of businesses surveyed in 2009 (Corporate Contributions Report Survey, February 2009) said they had already reduced the amount they plan to donate this year.Another 16% were considering cuts.35% of companies said they would make fewer grants this year and 21% said the grants they made would be smaller.As they complete their giving budgets for, corporate officials said they were most concerned about financial constraints, the recession and the alignment of their giving with their business’s needs.Among types of gifts, sponsorships of events take the biggest hit, 55% of businesses said they would cut back on that form of giving.www.mgifundraising.com 1-800-387-9840

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Foundations and theEconomyFewer Foundations Anticipate Decreasing the Number and Size of Grants in 2010. The vast majority of foundations responding to the Foundation Center’s latest “Foundation Giving Forecast Survey” anticipate making no changes in their grantmaking strategies in 2010. In contrast, a year ago close to two-thirds of respondents (63 percent) expected to reduce the number of grants they awarded and/or the size of their grants. Nonetheless, the shares of foundations that anticipate reducing the number and size of their grants in 2010 continue to be larger than the shares that anticipate increases, reflecting continuing repercussions from the economic crisis.www.mgifundraising.com 1-800-387-9840

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Individual Giving andthe EconomyDespite the significant downturn in economic conditions in recent years, the percentage of U.S. adults opening their wallets to charitable organizations has hardly diminished. More than four in five Americans continue to say they donated money to a charitable cause or organization in the past 12 months -- now 84%, compared with 87% in December 2005.www.mgifundraising.com 1-800-387-9840

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Volunteering and theEconomyAccording to the Gallup data, fewer Americans part with their time than their money on behalf of charity groups. Sixty-four percent of Americans currently say they have volunteered their time to a charity in the past 12 months, similar to the 62% recorded in 2005. Americans still prefer to give of their money rather than their time.www.mgifundraising.com 1-800-387-9840

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Fund Raising ProfessionalsConcernsKeeping professional fund raising staff and volunteers motivated.The impact of reduced endowment income on operating budgetsSome foundation officers are more concerned about ensuring the viability of non-profit institutions than launching new initiatives.Institutions are being forced to develop contingency plans in light of possible reductions in philanthropic support.www.mgifundraising.com 1-800-387-9840

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Fund Raising ProfessionalsConcernsThe reluctance of some non-profit leaders (CEOs and trustees) to solicit, or even contact donors right now.The inclination of some non-profit leaders to retrench when the desired approach by experienced professionals should be to move forward strategically.Donors appear to be waiting for the stabilization of the markets to assess the crisis’ impact on their personal holdings.www.mgifundraising.com 1-800-387-9840

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Current Impact ofEconomyNew donor acquisition from direct mail is down considerably in some institutions.Significant negative impact on some direct mail programs.Some galas and dinners are experiencing 10 – 15% fall off from the previous year.www.mgifundraising.com 1-800-387-9840

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Strategic OpportunitiesDespite theeconomy, there are strategic opportunities to explore.People are more empathetic.The media are listening.Large gifts are more powerful and get more attention.Many people have funds to give.Prospects will come to events, discussions, and site visits. They want to stay informed, even if they can’t respond immediately.www.mgifundraising.com 1-800-387-9840

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Giving Motivations81.2% ofwealthy donors said they are most motivated to give by the notion of “giving back to the community.”70.7% gave because they “support the same organizations or causes annually.”70.4% give because of their “social beliefs.”48.1% gave because they were asked!www.mgifundraising.com 1-800-387-9840

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Why People Don’tGive AnymoreNearly 60% of wealthy households who stopped giving to a charitable organization attributed their change in philanthropic behavior to no longer feeling connected to the organization.Merely 14.7% said that they stopped giving because of “lack of finances.42.3% said they received too frequent solicitations from the organization and 8% felt they weren’t being properly recognized for their donations.www.mgifundraising.com 1-800-387-9840

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Why People Don’tGive Anymore70% of donors give to the same organization year after year.In 2007, 38% of donors stopped supporting a charitable organization, with more than one-quarter (26%) of those surveyed discontinuing support for at least two organizations.19% stopped giving to four or more charities.www.mgifundraising.com 1-800-387-9840

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Top 5 ReasonsWhy People GiveBecause they are asked, or presented a giving opportunity.To give back to their communityCompassion for those in needPersonally believe in the causeAffected by the causeThis is based on an analysis of research in the field of philanthropy – including Indiana University’s Center on Philanthropy, Independent Sector, the University of Pittsburgh and others.www.mgifundraising.com 1-800-387-9840

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Need to Changethe Paradigm Thinking Outside the Box

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Identify the Box

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Understand theRole ofEach Type of Giving

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Demonstrate the WayDonors Can Make a Difference Today & In the Futurewww.mgifundraising.com 1-800-387-9840

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TRADITIONAL DONOR PYRAMIDOld ParadigmPLANNED GIFTSMAJOR GIFTSANNUAL GIFTSSPECIAL EVENTSwww.mgifundraising.com 1-800-387-9840

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Special EventsAnnual CampaignsMajorCapitalCampaignsINTEGRATED PROGRAMNew ParadigmDONORPlanned & Bequestwww.mgifundraising.com 1-800-387-9840

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VALUE-BASED GIVING Philanthropic Gifts Are a Transfer of Values

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More than Dollars,Gifts Reflect Values

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Expressions of ValuesIncrease Gifts

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Worthiness based www.mgifundraising.com 1-800-387-9840

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IMAGINE Understanding OurProspects

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Finding

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The right thingsto say

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The best wayto ask

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What to askfor & how much

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Learning the “Secrets”of how to Increase the “Desire” & “Intent” to Givewww.mgifundraising.com 1-800-387-9840

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CREATE A CULTUREOF PHILANTHROPYPositive Perspective on Philanthropy & Fundraising—Integral to Mission

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Enthusiastic Giving fromLeadership & Staff

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Positive Messages aboutGiving in Communications

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Gracious Donor-centered Community

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Having Fundraising Successwww.mgifundraising.com 1-800-387-9840

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ACHIEVE BRAND PINNACLEPositiveprogram whereby your institution expresses its goals through branding

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Trustworthy brands arebecoming the donor’s roadmap through a giant worldwide bazaar in which tens of millions of other sellers are trying to lure your donors away

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Positioning statement –avoid confusing the donor with multiple themes and taglineswww.mgifundraising.com 1-800-387-9840

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MOVES MANAGEMENT PROCESS CEO/Vice President

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Major Gifts Committee

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Major Gift Director(Moves Manager)

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Development Professionals

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Prospectwww.mgifundraising.com 1-800-387-9840

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CEO’S ROLE MOVESMANAGEMENT Articulate the Vision

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Promote Quality Management

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Lead Role inIdentification, Discovery, Cultivation, & Solicitation of Prospects

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Motivate Trustees, Directors,Advisory Board, & Volunteer Leadership

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Promote Interaction &Cooperationwww.mgifundraising.com 1-800-387-9840

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Key Components ofa Development PlanThe key components of a development plan are:  • development goals • strategies for reaching the goals (preferred, available)  • analysis of potential by constituency and by strategy  • action plan and timetable for each strategy, with income benchmarks • assignment of responsibilities for strategies and individual solicitations to volunteers, staff, others • marketing needs for each strategy • budget and funding for each strategywww.mgifundraising.com 1-800-387-9840

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Capital Campaign Planningand the Current EconomyMost organizations are in one of three stages of campaigning:Initial planningJust StartedWell underwayKey issues to be consideredFinancial GoalsTimingCase prioritiesProspect DevelopmentGift payment structuringDonor engagement, solicitation and communication strategies.www.mgifundraising.com 1-800-387-9840

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Should we go/notgo?List GO and NO GO considerations:Financing availabilityCase relevance and urgencyProspect pool capacityLeadership availabilityTiming Issueswww.mgifundraising.com 1-800-387-9840

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Campaign Planning inthis EconomyInclusive PlanningInvolve most influential trustees and some major donors in your planning activities.Bring your prospects along with you.Include prospects in your campaign planning.www.mgifundraising.com 1-800-387-9840

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Timing IssuesTiming issuesto consider:Extended planning phaseLonger campaign timetableFlexibility with public kick-off announcement and definitive ending dateUrgency of campaignSome campaigns have greater urgency and the case for support in this economy may be more compelling and supportable despite the economic factorswww.mgifundraising.com 1-800-387-9840

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Case IssuesCase considerationsin this challenging economy:Program support is compellingBuilding projects dependent on financingShovel-ready projects are good for economic recoveryEndowment is less attractiveChallenge and matching gifts strengthen casewww.mgifundraising.com 1-800-387-9840

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Case IssuesSome caseissues are particularly compelling right now!Public higher educationHuman rightsWildlife Conservation and climate changeDomestic hunger reliefMedicine/innovation/scienceGlobal healthwww.mgifundraising.com 1-800-387-9840

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Well UnderwayIf youare WELL UNDERWAY into a campaign know that:It will take longerYou may have to revise your timetableYou should reorder priority prospectsYou may have to revise case statement, emphasizing critical programs and de-emphasizing endowmentYou might offer to restructure gift paymentsYou should seek multi-year commitmentsYou should always publicize your good news!www.mgifundraising.com 1-800-387-9840

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General Development StrategiesFocusMission and CaseDevelop a short-term Action PlanIncrease ActivityIncrease Prospect ResearchPrioritize ProspectsNew Gift StructuresInclude Beneficiaries in Donor engagementwww.mgifundraising.com 1-800-387-9840

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General Development Strategies(Continued)Targeted RequestsPublicize New GiftsChallenge GiftsIntroduce Payment FlexibilityExplore DiversificationMotivateShare Philanthropic Informationwww.mgifundraising.com 1-800-387-9840

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Tip #1Reaffirm yourmission and continuously remind donors of the impact and urgency of philanthropic supportTell your story in a way that inspires investment despite or because of the challenges presented by the economywww.mgifundraising.com 1-800-387-9840

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Tip #2Increase activityincluding visits and briefings with donors and friends, and consistent communication.Your strategy is to “out hustle the economy” by making more visits and working harder to reach people.Keep your long-term donors close and your new donors even closer.” These visits will tell you three thingsWho is ready to giveWho needs more time and roughly how long what elements of your case resonate among donors.www.mgifundraising.com 1-800-387-9840

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Tip #3Develop ashort term action plan.Direct contact and visits with top donorsSpecial gatherings and forum (s) among donor and prospect networkCreate a 2 year development planImmediate financial prioritiesProspect sequencingSupport diversificationwww.mgifundraising.com 1-800-387-9840

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Tip #4Stay intouch. Now is the time to intensify cultivation efforts. Make personal calls on prospects and donors, letting them know how important your work is and how your organization is successfully facing current demands and how important they are. Let them know you won’t be calling on them for a gift until a more appropriate time…but you will be coming back. Remember 60% of wealthy households who stopped giving attributed their change in philanthropic behavior to no longer feeling connected to the organizationwww.mgifundraising.com 1-800-387-9840

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Tip #5Retain yourcurrent donors as a central strategywww.mgifundraising.com 1-800-387-9840

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Tip #6Reactivate yourPast Supporters (SYBUNTS)www.mgifundraising.com 1-800-387-9840

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Tip #7Monitor shiftsin timing and behaviorwww.mgifundraising.com 1-800-387-9840

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Tip #8 Correlate Geographyand the Economywww.mgifundraising.com 1-800-387-9840

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Tip #9 Correlate Industryand the Economywww.mgifundraising.com 1-800-387-9840

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Tip #10Getting theRight Story for Donor Acquisition.www.mgifundraising.com 1-800-387-9840

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Use new technologiesto tell your storyTip #11www.mgifundraising.com 1-800-387-9840

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Tip #12Use newtechnology to secure and collect pledges.www.mgifundraising.com 1-800-387-9840

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Tip #13Recognize donors.Pay greater attention than ever to the aggressive stewardship of your present donors. Let them know how important they are to you. Work with a small task force (staff and volunteers) to design a detailed and structured program. Put it in writing. How many times can you thank your donors in a year?www.mgifundraising.com 1-800-387-9840

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Tip #14Dare toAsk!!!Personal (face to facesolicitation – by a carefullyselected and well-trainedvolunteers who have made a financial commitmentCampaigns fail raise abovethe “clutter” because theyfail to “ASK”.www.mgifundraising.com 1-800-387-9840

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John A. Martin,CFREPresident and Managing Partner, MGI Fund Raising Consulting, Inc.Direct Line: 612-801-5149Toll Free: 800-387-9840Email: [email protected] Site: www.mgifundraising.comThank You!www.mgifundraising.com 1-800-387-9840

Afp Mn Speech Sept 2010 Updated

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Afp Mn Speech Sept 2010 Updated