1 NAYDO Webinar sponsored by blackbaud

2 Board development: creating strategies that effect positive changePresented by: Larry Smith LEAF LLC

3 SESSION GOALS To learn togetherTo be dialogical rather than monological To be dynamic rather than didactic

4 WHAT THIS SESSION IS ABOUTIdentifying and analyzing some of the challenges that YMCAs and other nonprofits face; Sharing our collective experiences; Sharing practical tools for enhancing our respective vineyards; and Trying to hear God’s voice in His desire to “renew our strength”.

5 WHAT THIS SESSION IS NOT ABOUTHow to build a multi-million dollar nonprofit; Learning “business” skills (e.g., John C. Maxwell on “business ethics”); and Engaging in “Bible Study” or discussing “Leadership Lessons from Jesus”.

6 BEGINNING AT THE BEGINNINGTHE Model Mission Statement: “When they had finished breakfast, Jesus said to Simon Peter, ‘Simon, son of John, do you love me more than these?’ He said to him, ‘Yes, Lord; you know that I love You.’ He said to him, ‘Feed my lambs.’ A second time He said to him, ‘Simon, son of John, do you love me?’ He said to him, ‘Yes, Lord; you know that I love you.’ He said to him, ‘Tend my sheep.’ He said to him the third time, ‘Simon, son of John, do you love me?’ Peter was grieved because he said to him the third time, ‘Do you love me?’ And he said to him, ‘Lord, You know everything; You know that I love you.’ Jesus said to him, ‘Feed my sheep.’ “ John 21:15-17 (RSV)

7 “We’re on a mission from God!”IN OTHER WORDS… “We’re on a mission from God!”

8 “CAPACITY BUILDING”

9 WHAT IS “CAPACITY BUILDING?”“Nonprofits have an obligation to seek new and even more effective ways of making tangible progress towards their missions, and this requires building organizational capacity. All too many nonprofits, however, focus on creating new programs and keeping administrative costs low instead of building the organizational capacity necessary to achieve their aspirations effectively and efficiently…This must change: both nonprofit managers and those that fund them must recognize that excellence in programmatic innovation and implementation are insufficient for nonprofits to achieve lasting results. Great programs need great organizations behind them.” Effective Capacity Building in Nonprofit Organizations (2001 Report for Venture Philanthropy Partners by McKinsey & Company)

10 LEADERSHIP LESSONS FROM MARCUS AURELIUS“From Rusticus I received the impression that my character required improvement and discipline; and from him I learned not to be led astray to sophistic emulation, nor to writing on speculative matters, nor to delivering little hortatory orations, nor to showing myself off as a man who practices much discipline, or does benevolent acts in order to make a display … and with respect to those who have offended me by words, or done me wrong, to be easily disposed to be pacified and reconciled, as soon as they have shown a readiness to be reconciled; and to read carefully, and not to be satisfied with a superficial understanding of a book; nor hastily to give my assent to those who talk overmuch...”

11 WHAT YMCA SENIOR LEADERS CAN (AND SHOULD) DOPray more than you currently do; Take so-called “business” courses (perhaps at a local community college); Model the example of work-life balance; Carefully walk the tightrope of being responsive to members’ needs without allowing them to set the agenda; Get serious about creating boards and leadership teams that are models of multi-racial, multi-cultural, and multi-class success; and Mentor promising young leaders.

12 How Does an Effective Not-for-Profit Board Work?1) Clarifying Mission/Vision 2) Resolving Key Issues 3) Developing the CEO/Exec Dir 4) Developing Financial Resources 5) Accessing Policymakers 6) Enhancing Reputation in our community Define Mission & Set Direction Monitor & Improve Performance Ensure Leadership & Resources 7) Overseeing Financial Performance and Risk Mgmt 8) Assessing Performance Against Mission 9) Improving Board Performance Framework placed in the public domain by McKinsey and Company in 2004

13 Overview: CONDUCTING A BOARD SURVEYPurpose: To assist you in defining next steps to enhance board and organization performance Goals: 100% Response Rate Focus on Key Areas of Board Responsibility Key Measures: Current (collective) Board Performance Current (individual) Board Member Energy & Engagement Near-Term Key Areas to Address Explore board size, structure, and operations

14 SURVEY DESIGN (SAMPLE)Member Energy and Engagement Understanding of mission Advocacy in the community Sacrificial giving Key Performance Areas Strong reputation in community Strong financial stewardship Fund development commensurate with needs Strong Board/Executive Director Relationship Operational excellence (e.g., Six Sigma)

15 SURVEY DESIGN (SAMPLE)Strategic Areas to Explore Size of Board (Sometimes, “less is more”) Committee structure and purposes Other Areas to Explore Processes for recruiting new board members Process for developing new leaders Work-Life Balance Expectations of board members regarding preparation and participation in board and committee meetings Clarity regarding who should be leading and how.

16 How Excited Are YOU to Be InvolvedHow Excited Are YOU to Be Involved? Individual Board Member Perspectives Almost Always Rarely Often I Get Excited About the Mission and Vision I Look for News, Trends That Impact Our Organization I Thoughtfully Prepare for Board and Committee Meetings I Actively Participate in Board and Committee Work I Act as Ambassador and Tell People About Our Work I Recommend People for the Board and Committees I Assist With Fund Raising Efforts I Make A Sacrificial Annual Financial Contribution I Truly Enjoy Serving on This Board

17 Over the Past Year, How Well Has the Board Performed?Below Expectations Meeting Expectations Exceeding Expectations Mission Clarifying Mission and/or Vision Resolving Key Strategic and Policy Issues Developing the Exec Dir/CEO Leadership & Resources Developing Financial Resources Accessing Policy Makers Enhancing Reputation Overseeing Financial/Risk Mgmt Performance Assessing Performance Against Mission Improving Board Performance

18 Where Should Board Energy Be Focused in the Next 1-2 years?Currently not a Priority Important, not Urgent Important & Urgent Mission Clarifying Mission and/or Vision Resolving Key Strategic and Policy Issues Developing the Exec Dir/CEO Leadership & Resources Developing Financial Resources Accessing Policy Makers Enhancing Reputation Overseeing Financial/Risk Mgmt Performance Assessing Performance Against Mission Improving Board Performance

19 Board Structure & OperationsStrongly Disagree Somewhat Disagree Somewhat Agree Strongly Agree Board Size is Appropriate Appropriate Committees with Clear Charters Board Composition is Appropriate Process for Recruiting, Training, Retaining Positive Exec Dir/CEO and Board Working Relationship Effective Leaders as Board and Committee Chairs Effective Process for Developing/Selecting New Leaders Bd Calendars, Agendas, and Advance Materials Support Bd Work Board and Committee Meetings Run Well Bd Strikes Balance of Work and Fun, Connects Bd to Mission

20 Clarify Mission & Direction (SAMPLE)Increase Efforts Build on These Strengths ED Critical ED Resolving Key Issues Clarifying Mission Key B=Board ED=Exec Dir B IMPORTANCE B Moderate MAINTAIN or DECREASE EFFORTS Poor Excellent PERFORMANCE

21 Leadership & Resources (SAMPLE)Increase Efforts Build on These Strengths Critical ED Developing Financial Resources B Enhancing Reputation B B Accessing Policymakers B IMPORTANCE Developing the CEO ED ED Key B=Board ED=Executive Dir Moderate MAINTAIN or DECREASE EFFORTS Poor Excellent PERFORMANCE

22 Monitor & Improve PerformanceBuild on These Strengths Increase Efforts Critical ED ED ED Assessing Org Performance Improving Board Performance Financial & Risk Mgmt B B B Key B=Board ED=Executive Dir IMPORTANCE Moderate MAINTAIN or DECREASE EFFORTS Poor Excellent PERFORMANCE

23 Rethinking the Work of Your BoardIs your board’s work substantive and strategic? Is it meaningful, both for your organization and for the individual board member? What has been the board’s role? What does it need to be? What are the critical issues facing your organization?

24 Rethinking the Work of Your BoardWhat is the consequence of a “critical issues” focus for your board work? On board agendas? On board committee structures? On board and staff, particularly executive director relations? On information and learning needs? On the board’s relation to stakeholders? Finally, if the board’s work is important, how is board effectiveness measured?

25 HUSTLE & FLOW: FUNDRAISING IN TOUGH ECONOMIC TIMES

26 BREAKDOWN OF CHARITABLE GIVING IN THE U.S. (2010):$15.29 (5%) $22.83 (8%) $41.00 (14%) $211.77 (73%) Source: Giving USA 2011

27 TYPES OF RECIPIENTS & CONTRIBUTIONSEnvironment and animals $6.66 2% Foundations $ % International affairs $ % Individuals $4.20 2% Unallocated giving $2.12 1% Arts, culture, and humanities $ % Public-society benefit $ % Religion $ % Health $ % Giving to religion reached $ billion in 2007, which is 33.4 percent of total estimated giving. Gifts to educational institutions are an estimated $43.32 billion, or 14.1 percent of the total. Human services organizations received an estimated $29.64 billion, which is 9.7 percent of the total. Health organizations received an estimated $23.15 billion, or 7.6 percent of the total. Public-society benefit organizations received an estimated $22.65 billion, which is 7.4 percent of the total. Arts, culture, and humanities organizations received an estimated $13.67 billion, which is 4.5 percent of the total. Organizations in the international affairs subsector (which includes aid, relief, and more) received an estimated $13.22 billion, which is 4.3 percent of the total. Environment and animal-related charities received an estimated $6.96 billion, or 2.3 percent of the total. Gifts to grantmaking foundations (independent, community, and operating foundations) are estimated to be $27.73 billion in 2007, or 9.1 percent of the total. A portion of giving is unallocated. This includes gifts to new organizations and to trusts, gifts to government agencies, differences in fiscal year and calendar year reporting, and deductions carried over from prior years. Education $ % Human services $ % The IU Center on Philanthropy/GIVING USA 27

28 IS HE A PHILANTHROPIST? “The World’s Most Famous (or Infamous) College Dropout”

29 HOW ABOUT HER?

30 OR HER?

31 INCOME BY RACE IN THE U.S. Median incomes Asian households = $75,027Non-Hispanic white households = $62,545 Hispanic households = $39,730 African-American households = $38,409 31 Source: U.S. Census Bureau 31

32 GIVING AND RACE Most studies find that whites volunteer more than blacks and Latinos (Bryant et al., 2003; Cannon et al., 1988; Gallagher, 1994) Several studies have found that racial differences disappear after controlling for education, income, and occupational status (Clary, Snyder & Stukas, 1996; Latting, 1990; Woodard, 1987). Race and giving and volunteering from a human capital perspective and social and cultural perspective (Musick, Wilson & Bynum, 2000; Wilson, 2000). Source: Rooney & Mesch

33 AMERICA GIVES: RESULTSAverage levels of giving by whites is 41% more than people of color ($1,572 vs. $1,114). However, after controlling for income, education, etc., differences in giving by race go away. Differences are income and education differences, not racial differences. Significant racial and gender differences in response to different survey methods. Source: Rooney & Mesch

34 DIFFERENCES IN GIVING BY RACE & GENDER: CONCLUSIONSRace does not matter after controlling for income, education, etc. That is, there is no statistically significant difference in giving between whites and minorities. Income and education matter a lot. Methodology is destiny. Source: Rooney & Mesch

35 SO WHAT??

36 Fundraising Team and ProcessDonors Must have The Team The Process Mission Boards Staff Team: Breaks at weakest spot Cultivation Solicitation Stewardship Process: Fails unless understood Linkage Ability Interest TFRS © 2008  LFR, Part 4 Chapter

37 Assessing Board Readiness to Raise FundsFundraising is a board priority and is understood as a responsibility of each board member Board members understand the mission Board members have overcome the fear of solicitation

38 Boards and FundraisingGoverning boards Development committee and various subcommittees Advisory boards “Friends of…” groups

39 Boards and FundraisingConsider different tasks for board members – asking is only one task Develop strategies to get reluctant board members involved in fundraising Require board giving (though not necessarily a specific amount)

40 Factors in Successful Board FundraisingRecruit board members strategically; set expectations beforehand Involve board in setting goals and selecting projects Involve board members in suitable ways Create strategy for helping reluctant board members Ensure that board members are donors Cultivate “ownership” in the organization

41 Ways for Volunteers to Participate Actively in FundraisingHow many of the following fundraising activities has each board member undertaken in the last year? Contact five to ten prospects personally by telephone. Send a letter to prospects in your community. Call donors to thank them for their gifts. Drop a personal note to lapsed donors. Make “thank you” calls and/or sign “thank you” letters Review and evaluate prospect lists Orient new board members Assist in reviewing “The Case” TFRS © 2008  LFR, Part 4 Chapter

42 Ways for Volunteers to Participate Actively in FundraisingDonate to the best of their ability. Identify and recruit future board members. Speak frequently about your organization and its programs and purpose. Accompany staff on solicitation/cultivation visits. Provide names and addresses for direct mail campaigns. Identify potential corporate donors. TFRS © 2008  LFR, Part 4 Chapter

43 IN SHORT, BOARD MEMBERS MUST…Give, Get, or… Get off

44 IN THE WORDS OF ROD TIDWELL (CUBA GOODING, JR.)…SHOW ME THE MONEY!!

45 FUND DEVELOPMENT: AN OVERVIEW

46 FUNDRAISING FUNDAMENTALSLinkage Is there any type of relationship with the (potential) donor - even a tenuous one? Ability Particularly important when asking for major gifts. But… Everyone has some capacity to give. Interest Why should I give to this institution?

47 GENERAL FUNDRAISING TIPSTell your story honestly and positively. Let your donors and prospects know the power of their gifts and what they can accomplish. Avoid a desperate recitation of all the “terrible things” that will happen if they don’t give. Stay in touch with your donors. Investigate inexpensive ways to communicate. Show, and tell, that your organization knows that belts are tightening everywhere, and you are doing your part. Step up public awareness campaigns using social media tools such as blogs, Facebook, and Twitter. Say thank you. Say it again. Invest a few minutes and 44 cents in a hand-written note. Drop your donor a brief . Better yet, pick up the phone for an even more personal touch. Make it a conversation about the donor’s interests. Not every contact should be a solicitation.

48 GENERAL FUNDRAISING TIPSEngage your board in very practical ways. Make sure that they understand their role in the fundraising process for your organization and are committed to it. Have them make some of those thank you calls. Keep a positive attitude about your mission, vision and purpose. If you haven’t reviewed those in a while, maybe it’s time for a refresher so you can recharge your batteries and maintain your role as a key contributor to your organization’s success. Use the practical tips and advice throughout this Giving USA report as touchstones of how to raise philanthropic dollars. And don’t just read the section that pertains to your sector. Between these covers, you will find a wealth of sound ideas to help you move your fundraising programs forward successfully. Take this opportunity to look at budgets, staffing, resources, mission and vision in fresh ways that can help propel you forward at a nominal cost compared to “business as usual.”

49 WHY DONORS GIVE: IT’S PERSONALPersonal relationship with solicitor Personal involvement with the Y Sense of duty or responsibility Being a part of something larger than themselves It’s a habit Not out of guilt Not because the Y has “needs”

50 EXERCISE… What are five reasons that donors should makegifts to YOUR Y?

51 CULTIVATION: PERSONAL (BUT PLANNED)A longer, more thoughtful cultivation period is essential for success in major gifts fundraising. Cultivation is a series of steps, or moves, which are: Donor-Centered – so you focus on gathering more than sharing information Planned – part of an overall strategy Purposeful – begin with the end in mind. Always know the desired outcome of each step.

52 HOW TO PREPARE FOR “SUCH A TIME AS THIS”Review your strategic plan Ensure that fund development strategy is a core component of the plan Two ways to improve bottom line: 1) increase revenue, 2) reduce expenses “Business practices”?? Increase and diversify donor base Over-reliance on one donor – or one type of donor – can be very costly! Upgrade donors Consider fee-for-service The IU Center on Philanthropy

53 HOW TO PREPARE FOR “SUCH A TIME AS THIS”Focus on cultivating major gifts and planned gifts Look for partnership opportunities (e.g., to leverage economies of scale) Consider small donors (e.g., President Obama) Consider creating an endowment As applicable, employ Good to Great principles

54 PREPARE The Heart Not the Head: Why People GiveSomeone I know asked me to give I felt emotionally moved by a story I want to feel I'm not powerless in the face of need I want to change someone's life I feel a sense of closeness to a group

55 PREPARE Remember the Three NOTs You are NOT a beggarYou might NOT receive a major gift pledge during meeting #1 Do NOT take a refusal personally

56 PREPARE Get Ready Who pursue prospects who have the greatest potential. Where do you meet? What determine increased gift request amounts in advance When . . .set an appointment.

57 PREPARE Get Set Make your own commitment Know the basics:Case statement Any background information or giving history Review ask amounts for each prospect Consider your presentation

58 EXERCISE Why do you need the money for which you will be asking?What will be accomplished if you are successful? What will happen if you aren’t successful?

59 To Quote Little Orphan Annie (and Jay-Z)…It’s a hard-knock life!

60 ASKING DURING TOUGH TIMESBe aware of national trends (e.g., increase in funding for operations, Greenlining Institute and NCRP) Know what’s going on in your community Jobs Corporate giving Local government grants Foundation giving Review (or create) your case statement. Ensure that it is timely and relevant. The IU Center on Philanthropy

61 ASKING DURING TOUGH TIMESReview your financial situation Develop a strategy for increasing revenues (not just grants) Develop a strategy for decreasing expenditures Reconsider “special events” How can you create positive cash flow? Upgrade your skills Join the AFP Take courses at The Fund Raising School

62 ASKING DURING TOUGH TIMESExpand your network Review your public relations plan Show impact of gifts (stewardship) Tell stories (empathy) Present opportunity or responsibility to “help those with less” (duty) Research, Research, Research! Devour the Chronicle of Philanthropy, Nonprofit Times, Giving USA, The Wall Street Journal, etc. What’s the fastest growing source of charitable giving??

63 ASKING DURING TOUGH TIMESReconsider individuals. Maintain connections with institutional funders but do not expect “bail out” from foundations or corporations. Research shows working and married women are very likely to decide household donations. Engage and cultivate women. Some research shows two “types” of donors – those moved by empathy and those moved by duty. Appeal to both! Arrange for commitments of frequent small donations: EFT or credit card authorization.

64 ASKING DURING TOUGH TIMESPromote your organization as a way for people to ‘exchange’ holiday gifts: Big Sisters had some success years ago with “Honor Mothers” for Mother’s Day. Your donors want to give. It’s your job to show them how! Engage volunteers

65 SOLICITATION: THE OPENINGThis phase should take approximately five minutes. Ask open-ended questions Observe the prospect’s interests Discuss his/her relationship with the organization Share your passion for the organization

66 SOLICITATION: THE PRESENTATIONThis phase should take approximately 20 minutes. Explain in simple terms what their last gift accomplished Don’t sell programs or “things”. People give from emotion and a sense of shared values Relate benefits based on what the donor has said is important to THEM.

67 SOLICITATION: THE CLOSEThis phase should take approximately five minutes. Paraphrase the prospect’s words: “You said earlier you believe in ” “This seems to interest you the most because . . .” Ask for a specific increased amount Listen, don’t talk Get prospect to say “yes” to something (anything!) Recap, Recap, Recap

68 SOLICITATION: OBJECTIONSObjections simply mean the prospect is weighing seriously the possibility of giving. Acknowledge the objection Don’t take offense or try to “defend” the “it” Don’t argue – probe for detail

69 WHEN PEOPLE OBJECT TO GIVINGThey are objecting to: Mission or vision Don’t share your values Don’t believe in the leadership or plan Wrong project or purpose Amount Timing *Jerry Panas © National 4H Council & The Osborne Group, Inc.

70 EXERCISE WHAT’S YOUR ELEVATOR SPEECH??

71 REMEMBER… “You have not because you ask not!”

72 STEWARDSHIP Without follow-up, all is lost They say YES Say thank youGet pledge form Write acknowledgement note They say NO Permanent or temporary? Consider other giving options? They cannot decide Always set follow-up time Involve others as necessary

73 STEWARDSHIP • Identification • Solicitation and negotiation• Qualification • Acknowledgment & follow-up • Develop strategy & timetable • Stewardship • Cultivation • Renewal Stewardship is the guiding principle in philanthropic fundraising. It is defined as the philosophy and means by which an institution exercises ethical accountability in the use of contributed resources and the philosophy and means by which a donor exercises responsibility in the voluntary use of resources.

74 STEWARDSHIP A Gift Only Begins the RelationshipShare all information with organization Encourage others with your success Engage donors in organizational activities

75 “FAITH-FRIENDLY” FOUNDATIONSJ.E. and L.E. Mabee Foundation The Maclellan Foundation Thomas H. Maren Foundation The Ford Foundation Lilly Endowment The Pew Charitable Trusts The Robert Wood Johnson Foundation The Marin Community Foundation The J. Bulow Campbell Foundation

76 “FAITH-FRIENDLY” FOUNDATIONSF.M. Kirby Foundation The Duke Endowment The Meadows Foundation, Inc. Prizker Foundation John Templeton Foundation The Lincy Foundation Bradley-Turner Foundation Jessie Ball duPont Fund Connelly Foundation Booth Ferris Foundation

77 “TECHNICAL STUFF”

78 THE DEVELOPMENT PROCESSPlanned gift Linkage Involvement Advocacy Big gift Major gift Special gift Upgraded donor Repeat donor Linkage Ability Interest Donor Prospect

79 LADDER OF EFFECTIVENESSPersonal: face to face Team of two One person Personal letter (on personal stationery) With telephone follow-up Without telephone follow-up Personal telephone With letter follow-up Without letter follow-up

80 The Donor Pyramid Fundraising StrategiesPlanned Gift Donor Personal contact only Capital Donor The Donor Pyramid Fundraising Strategies Personal contact only Special/Major Gift Donor Personal contact/letter/ phone call Renewed/Upgraded Donor Personal contact/letter/phone call First Time Donor First Time Donor Direct mail/telemarketing/fundraising benefit/Internet/media/door-to-door Universe of Prospects

81 ANNUAL CAMPAIGN PROCESSIdentification Identify prospects Determine relationship Determine capable gift amount Engage volunteers Cultivation Intentional process of relationship building Engage prospect in conversation Discover interests and gain information Solicitation Engage volunteers as needed Share your Y story Don’t “sell” programs, explain impact Make the ask Stewardship Share how gift made a difference Engage donor in conversation Determine if another gift is possible

82 LOCATE YOUR MAJOR DONORSHigh Financial Capacity Low Low Current Interest or Involvement High

83 ANOTHER EXERCISE! What is the current source of the majority of your annual revenue? Who might your organization be ignoring? Who might need further cultivation/stewardship? Are there other sources?

84 FOUR-LEGGED STOOL OF FUNDRAISINGDonor Source Current Income Estate Planning Income & Assets Assets Benefit Ongoing Programs/ Services Special Programs & Projects Endowment, Capital Buildings, Equipment, Endowment Unrestricted Annual Capital Planned Giving Annual Fund Capital Campaign Major Gifts (Program)

85 Identify the Critical FewTHE DONOR CYCLE Identify the Critical Few Learn & Share Your Vision Develop a Relationship Engage & Involve Prepare to Ask Ask for Specific Amount Say Thank You Provide Stewardship © National 4H Council & The Osborne Group, Inc.

86 THE DONOR PUZZLE © “Right” purpose “Right” amount “Right” solicitors“Right” time “Right” place “Right” participants “Right” materials Motivation and values Knowledge Philanthropic decision makers Natural partners Issues Involvement and contribution preferences Stewardship preferences © National 4H Council & The Osborne Group, Inc.

87 YOUR GOAL IS TO GET A “YES”To mission, vision, leadership, project and impact BEFORE asking for the specific amount “Coffee is for closers.” © National 4H Council & The Osborne Group, Inc.

88 THINK I’ll CATCH A CASE…

89 ABOUT THE CASE STATEMENTDefinition of “the case” Reasons for developing the case Vision statement

90 DEFINITION OF “THE CASE”The “case” is the expression of a cause. It articulates all the reasons and justifications for supporting the advancement of the cause. In other words, the case validates your organization’s existence. Case and cause are measured by degrees of relevance, importance, and urgency. The statement is backed up by materials and documents that give the statement credibility. (Remember: Donors are less interested in you reaching your fundraising goal than they are in making a difference in people’s lives!)

91 PURPOSES OF THE CASE Development of a case statement should involve board, staff, and volunteers. All should agree that the final product truly articulates the case. Leadership for fundraising will be enlisted and encouraged by having a role in developing the case. Enthusiasm will increase as all internalize the case and learn to articulate it in their own ways. The case, drawn from case resources, should include all information needed for various materials (case expressions) used in public relations and fundraising. Though intended as an internal document, the case can be shared with people whom the organization is cultivating for major involvement in various campaigns and projects. A strong AF makes an urgent and compelling case.

92 THE CASE… Answers why your organization is worthy of supportAnswers who you are/why you exist Answers where have you been Answers where you are going Answers the difference that “arriving” will make Answers what it will take to get “there” Answers how gifts help you get “there” IS CLEAR IN ALL YOUR MARKETING AND FUNDRAISING MATERIALS!!

93 CASE PREPARATION Is part of the organizational planningDevelopment professional can be catalyst and facilitate the process Development professional often serves as a key interpreter of external constituency’s concerns, needs, and perceptions Board/Trustees and professional staff are involved in order to gain their “ownership” (i.e., advocacy and full commitment) Key volunteers, donors, and community leaders should be involved in case validation. This will ensure that differing views are identified and addressed. Such views could have a negative impact on fundraising.

94 WHAT’S INSIDE THAT CASE??Stated organizational mission and need Documented community need Proposed strategies and tasks to alleviate need Identified beneficiaries Demonstrated organizational competency Required resources to achieve mission Statement of how gifts can be made Benefits (to donor) of making a gift

95 CASE EXPRESSIONS – THE ANNUAL FUNDDirect mail pieces Brochures Proposals Speeches Newsletters News articles Websites Telephone solicitation script Prospectus for personal contact Other?

96 CASE EXPRESSIONS: BASED ON COMMUNICATIONS THEORYReflect what the community wants and needs Be clearly stated Be focused as to purpose of the project the case reflects Appeal to both the head and the heart (emotional and rational appeals) Indicate what response is requested

97 CASE: PREPARATION Mission—Why do we exist? PhilosophicalHuman/societal need Value and values Goals—What do we want to achieve? Objectives—How will we achieve the goals? Programs and services—Which methods will we use?

98 CASE: PREPARATION Governance StaffingFacilities or mechanics of service delivery Finances—narrative, numerical, graphic Total expense and income Philanthropic support required Strategic planning and program evaluation History

99 CASE COMPONENTS Case Components Must Articulate MissionGoals Objectives Programs Governing Board Staffing Facilities, Equipment Finances Planning, Evaluation History Must Articulate Awareness, Insight to Problem Desired Achievement What’s in Place Service to People (Stories) Character, Quality of Organization Qualifications, Strengths Advantages, Strengths, Effectiveness Validate Need for Philanthropy Documents, Commitments, Strengths, Impact Heroic Saga, Credibility

100 EXAMPLES OF CASE EXPRESSIONSBrochures Foundation proposals Appeal letters Campaign prospectuses News releases Newsletter articles Web site Speeches to community organizations Face-to-face conversations for cultivation and solicitation

101 GIFT RANGE CHART - USES Planning Internal educationProspect involvement Board and volunteer training and education Determining where donors fit into your fundraising program

102 ABOUT THE GIFT RANGE CHARTThe chart is based upon well-researched ratios. After you create it: Evaluate it in terms of market conditions. Adapt it to market conditions. If necessary, change the gift ratios.

103 GIFT RANGE CHART - PRINCIPLESGift range charts work best if they begin at the $25,000 level or higher. Prospect-to-donor ratio begins at five-to-one and gradually reduces to two-to-one. Prospects who don’t give at the identified range can move to another range (even a lower one). Don’t be too “legalistic” about the gift range chart. It is a tool, not Scripture! For example, you may need to change gift ranges and/or number of gifts.

104 GIFT RANGE GIFT ($60,000 Goal)# of Gifts Cumulative # Gifts Prospect # Cumulative # of Prospects $ per Range Cumulative $ 3,000 2 10 (5:1) 10 6,000 1,500 4 6 20 (5:1) 30 12,000 750 12 18 48 (4:1) 78 9,000 21,000 500 36 72 (4:1) 150 30,000 250 24 10% of Donors 60 72 (3:1) 222 36,000 100 120 180 360 (3:1) 582 48,000 Under 100 $30 avg. 20% of Donors 400 580 800 (2:1) 1,382 60,000 60% of Goal 20% of Goal 70% of Donors 20% of Goal

105 GIFT RANGE CHART ($500,000 Goal)# of Gifts Cumulative # Gifts Prospect # Cumulative # of Prospects $ per Range Cumulative $ 25,000+ 2 10 (5:1) 10 50,000 10,000 4 6 20 (5:1) 30 40,000 90,000 2,500 18 24 72 (4:1) 102 45,000 135,000 1,000 54 120 (4:1) 222 30,000 165,000 500 250 110 320 10% of Donors 164 484 330 (3:1) 960 (3:1) 552 1,512 55,000 80,000 220,000 300,000 100 20% of Donors 1,484 3,000 (3:1) 4,512 100,000 400,000 Under 100 3,334 4,818 800 (2:1) 11,180 100,020 500,020 60% of Goal 20% of Goal 70% of Donors 20% of Goal

106 The right person askingFUNDRAISING IS . . . The right person asking the right prospect for the right gift for the right program at the right time in the right way.

107 STRATEGY

108 issues facing the NP sector have GROWN in size & complexity in the last 30 yearsDoubling of the number of nonprofits in the United States in the past 20 years Demographic changes and increased diversity of our sector Growing demands on nonprofits to meet the needs of society Changing amounts and forms of support by government and private donors Blurring of boundaries between nonprofit, government, and business sectors Increasing focus on accountability Greater focus on the credibility and effectiveness of nonprofit organizations Decreasing participation by citizens in affairs of government

109 STRATEGY: ETYMOLOGY AND DEFINITIONstrat●e●gy [strat-i-jee] 1680–90; < Greek stratēgía generalship, equivalent to stratēg ( ós ) military commander, general ( strat ( ós ) army + -ēgos “A coordinated set of activities that are aimed at creating and sustaining a competitive advantage in advancing an organization’s mission.”

110 WHAT IS STRATEGIC PLANNING?At its base, strategic planning for a nonprofit organization is a dynamic process in which key stakeholders determine 1) what the community needs, 2) whether those needs fit the organization’s mission, 3) which of those needs the organization is able to address, and 4) how to close the gap between the two. In the for-profit world this is often referred to as “creating value”.

111 WHY ENGAGE IN STRATEGIC PLANNING?To ensure that the organization is achieving its mission – and working towards its vision. To ensure that everyone in the organization knows what the overall goals are. To build organizational cohesiveness. To identify and evaluate opportunities. To determine which opportunities not to pursue. To create strategic thinkers.

112 UNDERSTANDING STRATEGIC PLANNINGDefining important terms (“strategy”, “competitive advantage”, “value proposition”, etc.) Why creating a “strategy” is not (necessarily) “planning” Understanding strategy as an opportunity Focusing on the existential issues (e.g., vision, mission, ongoing viability)

113 SAMPLE STRATEGIC QUESTIONSMacro Organizational Questions (Level 1) Where are we now? (Assessment) Where should we be going? (Strategic Direction) How should we get there? (Process) Are we getting there? (Evaluation) Micro Organizational Questions (Level 2) What should we keep doing? What should we start doing? What should we stop doing? How do we step up to new level? Do we have the correct staff in place? With whom should we collaborate?

114 STRATEGIC PLANNING: COMMON MISTAKES“Execution” of the execution Mistaking goals for strategy Generating more goals than can reasonably be pursued Expecting strategies to fit within a rigid time line Confusing strategic planning with consensus building Forecasting the future from a snapshot in time Pretending to be objective Frustrating staff through bad data, inaction, or both Continuous, responsive consideration of strategic challenges is the path to timely, successful strategic decision making and actions.

115 STRATEGIC PLANNING: COMMON MISTAKESSP should be aimed at operationalizing the strategic thinking that must precede it, not replacing it with operational goals and objectives that are most often not implemented. Real-Time Strategic Planning 1) requires the organization to regularly explore internal and, especially, external dynamics on an ongoing (or sometimes, intermittent) basis as opposed to a rigid timeline and 2) requires actionable strategies – not tactical goals. Effective strategy connects an organization’s mission to its goals. Essential Ingredients of Organizational Identity Programmatic Strategy Essentials Operational Strategy Essentials

116 A PROCESS FOR STRATEGIC PLANNINGGather a cross-section of your key stakeholders Members of staff, board, “customers”, funders, community members Decide who is going to lead the process (internal or external) Decide whether to engage a consultant Review (or create) your Vision Statement Review (or create) your Mission Statement Review prior strategic plans (if they exist) Conduct a market analysis What is the size of our potential market? Who should we target as customers? Benchmark similar organizations

117 COMPONENTS OF A STRATEGIC PLANExecutive Summary Vision, Mission, Core Values Projected Outcomes Results of Market Analysis “Core” of the Plan Key Organizational Challenges and Opportunities Overall Goals Key Objectives Persons responsible Timelines Funding Strategy Plan for sustainability

118 KEYS TO A SUCCESSFUL STRATEGIC PLANNING PROCESSCreating, understanding, and following “the vision” Avoiding “terminology block” Stakeholder buy-in Asking (and answering) The Five Critical Strategic Questions Clarity and congruence of goals and objectives Staff ownership Forecasting Making planning meaningful Linking strategic plan to workplans Linking strategic plan to annual operating plan

119 KEYS TO A SUCCESSFUL STRATEGIC PLANNING PROCESSReviewing and (as necessary) refreshing the plan Stasis vs. Dynamism Ensuring fealty to mission  Leadership Organizational assessment Performance management

120 SETTING A CLEAR AND COHERENT AGENDA IS CRITICALIssues arise and need to be assessed on an ongoing basis Potential issues come from a number of internal and external sources, including: Interactions with government officials at the federal level and, where appropriate, at the state level in concert with others Discussions at major convenings Scans of research and press publications Infrastructure organizations (e.g., BoardSource, Council on Foundations) Coalition partners (e.g., Interaction, National Assembly, Center on Budget and Policy Priorities) Solicited input from the grassroots

121 CREATING THE PLAN Define “the world as it is”Define “the world as we wish it were” Review focus group and survey data Identify process outcomes Identify documentary outcomes Review the Five Critical Strategic Questions Identify strategic goals and objectives Identify tactics Create timeline Assign overall strategic planning leader Assign leaders for goals and objectives

122 TEMPLATE FOR ISSUE CATEGORIESOngoing/Core program Issues that are fundamental to the organization and are part of your strategic platform Link to top priorities in its theory of change Issues that help define the organization Six core issues: Assuring the vibrancy of the organization and the broader Tax incentives for charitable giving Regulatory framework for nonprofits (FTC, IRS, etc.) Ethics and accountability Strategic Priority issues Emerging Issues Other Important Issues Core program/emerging issues that rise to a higher level of resource allocation Sense of urgency to take action Structured process to elevate to strategic priority Clearly defined goals Clarity on approach, key audiences and point of view Specified time frame for action Define the #1 strategic priority Issues on which to explore potential courses of action Identified through a structured process Specified time frame for decision on course of action Examples include: Civic engagement International civic engagement Federal/state budget challenges Important issues on which the organization will take a limited role Outside the core program Clarity on point of view, strategic approach and key audiences Clearly defined goals Specified time frame for action Examples include: Building Value Together Corporate/Nonprofit Partnerships

123 ADDRESS ISSUE TYPES IN VARIOUS WAYSOngoing/Core Program Strategic Priority issues Emerging Issues Other Important Issues Ongoing staff commitment to the issue Primary responsibility resides within the appropriate functional area within the organization, with cross-functional support as needed Monitoring and engaging on developments among key stakeholders Cross-functional teams where appropriate, with clear accountability for delivering on organizational objectives Preliminary exploration conducted by special emerging issues and strategic initiatives department Primarily handled within the most appropriate functional area Primarily handled within the most appropriate functional area

124 THE WORKPLAN (THE RESULT OF A STRTEGIC PLAN)Action Steps Audience Completion Date (Actual vs. Planned) Accountable Party Priority Level How to Implement $ Other Support/ Resources Success Measures

125 REMEMBER… Ultimately, the strategic plan is not about achieving“outputs”; it’s about achieving your desired “outcomes”.