(C) 2005 BBBS & The Osborne Group, Inc. 1 Taking Fund Development to the Next Level.

(C) 2005 BBBS & The Osborne Group, Inc.

1

Taking Fund Development to the Next Level


2

National Averages

• Year to year anticipated growth – 5% to 6% annually

• Strategic growth – double digit– Campaigns or major programmatic or

circumstance changes


3

Double Digit Growth

67.38%

57.32%

34.92%

29.13%

14.62%

-1.08%

-10

0

10

20

30

40

50

60

70

80

CompleteRevenue Data:28 Agencies

BBBS of SouthTexas-SanAntonio, TX

BBBS of theNational Capital

Area-Washington, DC,

DC

BBBS of King &Pierce

Counties-Seattle, WA

BBBS of GreaterMiami &

MentoringResource Ctr-

Miami, FL

BBBSSoutheasternPennsylvania-

Philadelphia, PA


4

Sustained double digit FD growth•Invest in FD•Improved BFKS, RMM, LMBM, major gifts•More 6 and 7-figure gifts•Less reliance on a few donors•New, high-value corporate relationships•Strategic multi-year foundation gifts

5

Balanced Portfolio $5,000,000

12%

15%

13%

12%

48%

United Way Government Foundations Corporations Individuals

6

Balanced Portfolio $10,000,000

6%9%

12.50%

12.50%60%

United Way Government Foundations Corporations Individuals


7

BBBSA Philanthropy Update

• Seed capital for investment

• FD Information and training

• FD technology

8

The Tarnside Curve of Involvement

High

Giving

Low

Low INVOLVEMENT High

Awareness Interest

Engagement

Commitment

Ownership

Taking Personal

Responsibility


9

Boomers Giving More**Donor Trends Project Study 7.05

• 33% plan to increase giving in next five years– 12% WWII

• Average gift $1,361– $1,138 WWII

• 40% plan to leave charities in their will– 23% WWII


10

High Giver Profile* *2005 CMS Prime Group Study

• 77% of $1,000+/year donors give to a few favored groups every year

• 58% say they are knowledgeable (compared to 38% of total respondents)

• Prefer established groups

11

High Giver Profile* *2005 CMS Prime Group Study

• College degrees• 48% want to be seen as “members” of the group• More likely to give a portion to the church (61%)


12

Giving Levels Tied to Loyalty* *2005 CMS Prime Group Study

• As giving amounts increase, reported loyalty rises as well

• 81% of $1,000+/year donors say they are highly loyal

• WWII most loyal


13

Organizations are Losing More Donors*

• Median loss of 47.8% in 2004• 45.9% in 2003

*Target Analysis Group study of DM donors


14

First Year of Giving Matters!**Target Analysis Group

Year One 40% Renew

Years Two-Four 65% Renew

Years Five Plus 85% Renew


15

Why $1,000+ DonorsStopped Giving**2005 CMS Prime Group Study

• Can no longer afford• Interests changed• Found more effective

organization• Disagree with

organization• Dissatisfied with

performance• Not sure my gift made a

difference

• 64%• 40%• 36%

• 35%

• 35%

• 35%


16

Why $1,000+ DonorsStopped Giving**2005 CMS Prime Group Study

• Issues was solved• Haven’t been asked• Didn’t keep me

informed• Other• Didn’t keep me

involved

• 13%• 12%• 12%

• 12%• 8%


17

Boomers More Likely to Stop Giving due to Performance*

*2005 CMS Prime Group Study

• More effective group, dissatisfaction, disagreement– Boomers 40%– WWII 34%– Gen X 32%

• Not sufficiently informed or involved– Boomers 44%, WWII 39%, Gen X 42%


18

Philanthropy Success Factors

• Vision

• Strategic Goals and Plan

• Multi-year Revenue Plan

– “Bottomed Up”– Covering short term needs/contingencies– Projecting for long term

needs/investments

• Fundraising Priorities and Costs


19

Philanthropy Success Factors

1. Resourced philanthropy office

2. CDO with skills and commitment

3. Involved CEO

4. Committed Board with the capacity and inclination to give

5. Balanced portfolio

6. Major Gifts and Stewardship focus

7. A “pipeline” of prospective donors


20

Increased Board Capacity and Commitment

Board Giving and Getting

0%

50%

100%

150%

Giving$1,000+

MG capacity Getting


21

Enough Identified Prospective Donors

• Based on Table of Gifts

• Minimum of 500 able to give $1,000 and more

• $5,000,000 a year requires 650 able to give $1,000 to $500,000

• $10,000,000 requires 1,200 able to give $1,000 to $1,000,000


22

Focus on Major Gifts from all Sources -- Highest ROI*% of Revenue from Major Gifts

51% 35% 16% 11%

Highest Fundraising Performers Top 25% Second

25%Third25%

Bottom25%

*The Advisory Board Study of Top Performing Fund Development Offices

23

Staffing the FunctionsPriority #1

• Chief Development Officer– Strategy– Management– Major Gifts/staff

CEO

• Special Events– Fundraising– Cultivation– Bowl for Kids Sake

• Individual Giving– Annual Appeals– Raising More Money– Leadership Gifts

• Corporate and Foundation Giving/Grant-writing

• Data entry, Reporting and Research

• Development Assistant and Stewardship


24

A Model for $5M Agencies

Development Asst./S tewardship Specialist

Database M anager/Researcher

Director of IndividualG iving/RMM

Director of Corporate& Foundation Relations

Director of Events/BFKS

Chief Developm entOfficer

CEO/Executive Director


25

A Model for $10M Agencies

Developm ent Assistant 2

Developm ent Assistant 1

G ift & BiographicalInform ation Specialist

Database M anager/Researcher

Stewardship Specialist

Director of IndividualG iving/RMM

M ajor G ifts Officer

G rantw riter

Director of Corporate& Foundation Relations

Director of Events/BFKS

Chief Developm entO fficer

CEO/Executive Director


26

Enhancing Your Plan

• Based on Philanthropy Success Factors© Assessment– Gather needed data– Complete with ADD

• Discuss results• Identify strengths

• Identify high impact fixes

• Enhance plan• Monitor progress


27

Building on StrengthsHigh Impact Fixes

• Easier to move from good to great than from poor to better

• Highest impact, easiest to execute• Must dos


28

The Giving Cycle

Identify the “Critical Few”: those with the greatest capacity to give Creating & sharing

the BBBS story

Developing a relationship

Engaging and InvolvingAsking for a

specific amount

Saying thank you

Providing stewardship and

accountability

Preparing to ask

Acquiring donors to

BBBS


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Stewardship=Joy=More Gifts!


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Stewardship

• Plan• Calendar• Materials• Creativity• IMPACT AND ACCOUNTABILITY• Regularity• Personalized for best donors and donors

with highest capacity


31

Other High Impact Fixes and Must Dos

• Vision and vision visits

• CDO and staffing

• Training

• Board development


32

Laser Focused Execution

• Strengths, Fixes• Staffing• Systems and

technology• Budget• Prospects• Board

33

Donor

Pool

RMM

BFK

S

Indiv

idual

Gifts

Corporate

Sponsors

Cause-RelatedMarketing

E-

mark

ing

Web Site

Special

Events

Your Donor Pool Comes From…Bigs


34

Segment Your Pool Based on Capacity

Critical Few

Leadership

Everyone Else


35

Create a Plan for Each Segment

• Top BFKS supporters – givers and organizers

• Top RMM donors• Top corporate,

foundation, individual donors

• High capacity low givers• Board members• Everyone else

• Stewardship

• Communications

• Visits

• Engagement

• Solicitation


36

Special Plan for Board Development

• 320 Assessment

• Where do you want to be?

• Getting there!

37

Monitoring and Reporting

• What is the Board asking for and receiving?

• What is the CEO asking for and receiving?

• What is the CDO looking at daily, weekly, monthly, quarterly, annually?

38

Progress Against Goals

• Sources and Purposes

• Year to year

Corp Found Ind Goal

Matches

Capital

Infra.

Other


39

Some Key Indicators

• % of name by name donor retention

• % of upgrades• % of pledge fulfillment• Yes ratio• Ask to Amount ratio

40

Moves Management

Name Cap Read Ask Move Date Who

Joe $250k 0-3 $100k 2.12 KEO

Mary $100k 9-12 $100K 2.22 JM

Sally $50k 0-3 $10k 1.31 JM

Tom $25k 6-9 $25K 1.5 JM


41

Dashboard

Prospects and pipeline Board giving and getting

Visits and engagement Plan execution and results


42

Resources and Tools

• Philanthropy Success Factors©

• New national hire• Regional and National

Conferences• New Toolkit

(C) 2005 BBBS & The Osborne Group, Inc. 1 Taking Fund Development to the Next Level.

Documents

osborne group

effective group

wwii slide

commitment slide

stewardship slide

loyal slide

level slide

target analysis group