September 10, 2013. Instructions for Warm-Up Exercise: Take a few minutes to look at the “I Give Because” page on the wall. Using the stickers provided,

September 10, 2013

Instructions for Warm-Up Exercise:

Take a few minutes to look at the “I Give Because” page on the wall.

Using the stickers provided, mark the statements that apply to you and how you make decisions in your own nonprofit giving. You may mark as many statements as you like.

If there is something that you would like to add (another reason why you give), write it on a post-it and add it to the “I also give because…” box at the bottom. If someone has added a statement in this section that you feel also applies

to you, you may add a sticker to that post-it.

Agenda:

IntroductionsWorking Agreements & Goals

Part I: Laying the Groundwork

Fundraising overviewWhat you need before you begin fundraising

The board’s role in fundraising Creating a fundraising plan

Part II: How to Fundraise

Creating an individual donor program Applying for grants

Generating corporate & business donationsSpecial Events

Fundraising Trends

Questions & feedback

Introductions1 MINUTE with your partner:

Name

Organization

Role—Development Director, ED, etc.

What’s the word or image that comes to mind when you think of “Fundraising”?

4 MINUTES with your team:

Name

Organization

Role—same as above, etc.

What’s the word or image that comes to mind when you think of “Fundraising”?

POPCORN

Goals for today's workshop:

Develop understanding about effective methods of raising money for non-profits

Share knowledge and real-life experiences that others can use to increase their fundraising

success

Lay the groundwork for success- a clear fundraising plan- and provide the practical tools

to make the plan a reality

Working Agreements

Recognize we are all at different levels, with varying experiences. Celebrate the diversity and the learning.

Cell phones on stun.

One conversation at a time- no sidebars.

Vegas Rule.

Parking Lot.

PART I: Laying the Groundwork

What is fundraising?

fundraising- (noun) the raising of assets and resources from various sources for the support of an organization or a specific

project.- The Association of Fundraising Professionals Fundraising

Dictionary Online

What are some things you need to have in place before

you start fundraising?

Things to have in place before you start:

Organizational budget

Non-profit tax status

A donor tracking database

A system to quickly acknowledge donations and donors

Individuals (staff, board, volunteers) who are trained in how to ask for money

Knowledge of available funding sources

Basic materials about the organization

Firm knowledge of who you are

Clarity and agreement about how the funds will be used

Source: GivingUSA 2013 Highlights(www.givingusareports.org/2013)

The Board’s Role in

Fundraising

One of the board’s primary responsibilities is ensuring that the organization has adequate

funding to fulfill its mission.

Board members do this by: …reviewing financial documents and budgets. …making personal financial donations. …helping to make connections with prospective donors. …asking for donations.

Quick gut check:

How are your board members doing in fulfilling their fundraising

responsibilities?

Three steps to board fundraising success:

Make it clearMake it easyMake it fun

The Fund Development Committee

The Fund Development Committee oversees fundraising strategy and the board’s fundraising

activities by…

…working with staff to establish a strategic fundraising plan.

…engaging in fundraising activities.

…taking the lead in certain fundraising activities.

…being responsible for other board members’ fundraising engagement.

What does this all mean?

Fundraising is a combined effort between staff (primarily the

Executive Director and Development director, if applicable) and the members of the board and

development committee.

Think to yourself:

What is one thing you can do in the next 48 hours to more

effectively engage the members of your board in

fundraising?

Creating a Fundraising

Plan

What is a fundraising plan?

Step One: Assess your strengths

and weaknesses

Group Exercise:

Assess your strengths and weaknesses

Board and board giving

Staff

Members, donors & prospects

Grants

Corporate & business donations

Fundraising events

Earned income

Step Two:Review your current

budget and your recent fundraising numbers

FY 2011 FY 2012 FY 2013 FY 2014 (projected)

Major Donors ($1,000+) $2,500 (2 donors) $4,750 (4 donors) $12,300 (8 donors) $30,000 (20 donors)

Mid-level donors ($250-$999) $2,000 (3 donors) $3,600 (5 donors) $5,800 (15 donors) $20,000 (35 donors)

Low-level donors (<$249) $1,500 (8 donors) $3,000 (14 donors) $4,900 (26 donors) $7,500 (50 donors)

TOTAL INDIVIDUAL DONORS $6,000 (13 donors) $11,350 (23 donors) $23,000 (41 donors) $57,500

Greater New Orleans Foundation $10,000 $0 $17,000 $20,000

Baptist Community Ministries $5,000 $5,000 $0 $0

Foundation for Louisiana $0 $15,000 $50,000 $35,000

TOTAL GRANTS $15,000 $20,000 $67,000 $55,000

Entergy $2,500 $1,500 $3,500 $0

Home Depot $10,000 $10,000 $15,000 $15,000

TOTAL CORPORATE & BUSINESS $12,500 $11,500 $18,500 $15,000

Annual Dinner (Net) $6,000 $7,500 $12,000 $15,000

Wine & Cheese Party (Net) $250 $0 $350 $500

TOTAL EVENTS $6,250 $7,500 $12,350 $15,500

Tuition Fees $4,600 $6,750 $5,800 $7,000

TOTAL EARNED INCOME $4,600 $6,750 $5,800 $7,000

TOTAL INCOME $44,350 $57,100 $126,650 $150,000

Step Three: Set Goals

GOAL: $165,000

DEADLINE: July 31, 2013 (end of FY 2013)

Donor Goals:• Secure 25 gifts of $1,000 or more• Increase donor retention rate to 70%• Get at least three prospect names from each board member • Raise $67,500 totalGrant Goals:• Apply for five grants; receive at least two grants • Contact each foundation at least four times during grant period• Raise $55,000 totalCorporate Giving Goals:• Identify five potential corporate sponsors with which a board or staff member

has a personal connection• Ask for four donations• Raise $15,000 totalEvent Goals:• Secure sponsors that cover 100% of Annual Dinner event costs• Net $20,500Earned Income Goals:• Have 50% returning students and 25% “bring-a-friend”/ referral students • Raise $7,000 total

Step Four: Create your

fundraising calendar

JANUARY 2013Holidays & Fixed DatesNew Year's Day- January 1Twelfth Night- January 6MLK Day- January 21Fundraising Dates & DeadlinesAnnual Dinner Planning Kickoff Meeting- January 15 (MARY & JOE)Smith Family Foundation Grant due- January 25 (STEVEN)

FEBRUARY 2013Holidays & Fixed DatesLundi Gras- February 11Mardi Gras- February 12Fundraising Dates & DeadlinesAnnual Dinner Monthly Planning Meeting- February 28 (MARY & JOE)

MARCH 2013Holidays & Fixed DatesSt. Patrick's Day- March 17Staff Retreat- March 29-31Fundraising Dates & DeadlinesAnnual Dinner Monthly Planning Meeting- March 21 (MARY & JOE)

APRIL 2013Holidays & Fixed DatesVolunteer Appreciation Luncheon- April 6French Quarter Fest- April 12-14Jazz Fest- April 26-28Fundraising Dates & DeadlinesFinal Annual Dinner Planning Meeting- April 16 (MARY & JOE)Annual Dinner- April 20 (MARY & JOE)

MAY 2013Holidays & Fixed DatesJazz Fest- May 2-5Mother's Day- May 12Memorial Day- May 27Fundraising Dates & DeadlinesCultivation visits with Baton Rouge-area donors (MARY)

JUNE 2013Holidays & Fixed DatesFather's Day- June 16Fundraising Dates & DeadlinesJones Family Foundation Grant Deadline- June 7 (STEVEN)Send mid-year letter- June 14 (MARY)

JULY 2013Holidays & Fixed DatesIndependence Day- July 4Mid-Year Program Strategy Meeting- July 8Fundraising Dates & DeadlinesGeneriCorp corporate funding proposal due- July 16 (STEVEN)

AUGUST 2013Holidays & Fixed DatesSchool startsFundraising Dates & DeadlinesCultivation visits with New Orleans-area donors (MARY)

SEPTEMBER 2013Holidays & Fixed DatesLabor Day- September 2Rosh Hashanah- September 4-6Fundraising Dates & DeadlinesCommunity Foundation Grant due- September 30 (STEVEN)

OCTOBER 2013Holidays & Fixed DatesColumbus Day- October 14Halloween- October 31Fundraising Dates & DeadlinesLaunch Annual Board Campaign- October 18 (MARY)

NOVEMBER 2013Holidays & Fixed DatesVeteran's Day- November 11Hanukkah begins- November 27Thanksgiving- November 28Fundraising Dates & DeadlinesMid-Campaign Meeting- November 15 (MARY)

DECEMBER 2013Holidays & Fixed DatesHanukkah ends- December 5Christmas- December 24-25New Year's Eve- December 31Fundraising Dates & DeadlinesLast day of campaign- December 20 (MARY)Send year-end letter- December 22 (MARY)Send year-end email- December 31 (MARY)

Think quietly: how are you doing in relation to

those four steps?

Grab a post-it & make a note: of the fundraising planning tools just shared, what one thing might

you try out to upgrade your planning?

PART II:How to Fundraise

Creating an Individual Donor

Program

Major Donors

Mid- Level Donors

Small Donors

The Donor Pyramid

Why do people give?

What makes a person give to a

specific organization?

A person may give money for many reasons.

A person gives money to a specific organization because of:

Ability

Belief

Contact

To find donors, look for people who feel they have the ability to give

and who believe in your organization.

Then, ASK!

Where can you find these

potential donors?

Find donors......by asking board members and

volunteers to refer friends and family....at your events.

...at partnering organizations....on your mailing and email lists.

...among your existing donors.

Short exercise:List a few of your potential individual donors and who

from your organization could approach them.

Thank before you bank!

Within 72 hours, make a personal thank you call or send a

thank you note.

How do you keep track of information about your donors and donations?

What information will your organization need to know

for the future?

Applying for Grants

Where do I find my grant?

Online research (The Foundation Center, Google)

Community & foundation listservs

Other organizations doing similar work

Listservs With Grant Announcements

Grantstation Insider (Free with LANO membership)

Unified Nonprofits of Greater New Orleans (unifiednonprofits.org)

Congressman Cedric Richmond's government grants newsletter- [email protected]

Larger foundations (i.e. Greater New Orleans Foundation, Foundation for Louisiana, New Orleans Jazz & Heritage Festival

Foundation, Louisiana Cultural Economy Foundation, etc.)

The Grantsmanship Center (tgci.com)

Neighborhoods Partnership Network (npnnola.com)

Common documents required for grants

Your mission statement/ program overview/ Case for Support

Your current budget

List of board members and their biographies

List of staff members and their biographies

Copy of IRS determination letter & 990 form

Audited financial statement

Consider… The funder's priorities

The funder's organizational requirements

The funder's geographic focus

The size of the grant

Other organizations the funder has supported

The funding timeline

Whether you have the capacity to write the proposal

Whether you have the capacity to follow the funding requirements

Where do I find this information?

The Foundation Center

GuideStar.org

990 tax forms

Google/ Funder's website

When in doubt, call the foundation to ask!

YES: Grant will cover operating expenses

Grant can support existing activities

Grant can expand activities in a way that is productive and helps advance your mission

NO: Grant leads to “mission creep” or creates new

work that distracts from your mission and priorities

Read the directions

Length, format, font, number of copies, required attachments,

things you should include, things you should NOT include…

Five Rules for Writing Fundable Grant Proposals:

1- Keep it clear and simple

2- Use (credible) data

3- Use real-life stories

4- Be specific

5- Use language that the person reviewing the grant will understand

Creating your project budget Make a list of everything you will need to spend money on for

this project

Use real numbers to calculate how much each item will cost

EXPENSE ITEM COST

Part time teacher (12 hrs/ week @ $16/ hr x 48 weeks) $9,216

Paint, paintbrushes & modeling clay for 48 students ($38/ student/ semester x 3 semesters)

$5,472

Course description photocopies (350 color copies @ $.89/ copy)

$312

TOTAL $15,000

Consider overhead and administrative costs

Supervising staff and administrative staff who will play a role in the project

Office rent, utilities and insurance

Legal, bookkeeping and payroll expenses

Budget Narrative/ Budget Justification

The narrative serves two purposes:

• It explains how the costs were estimated.

• It justifies the need for the cost.

The importance of editing Make sure everything matches

Use “the brother-in-law test”

Have someone else review the directions and make sure you followed them

Have the person/ people responsible for doing the work review your draft

Review a full copy, with all attachments, arranged exactly the way the foundation will see it

When you your proposal is accepted

Thank the funder

Confirm when you will receive the check, what documentation you will need to sign and how

they prefer to hear from you

Start planning for after the grant period

When your proposal is declined

Thank the funder

Ask for feedback

Ask if you can apply in the next grant cycle

Ask if you can stay in touch and, if so, how

Generating Corporate & Business

Donations

Potential business donors: Businesses that have a stake in your work

Businesses that would want to advertise to your audience

Your vendors (bank, realtor, office supplies company, etc.)

Employers of your board members or of people your board members know

Businesses in your neighborhood

In-Kind vs. Monetary

Marketing vs. Philanthropy

Letter of Introduction:

Who you are

Your connection to the company

What you are asking for

How the company will be recognized

Your contact information and follow-up plan

Ways to recognize corporate donors:

Name something after them

Hang a plaque with their name and logo

List them in your annual report

List them in your event program

Give them a quote in your press release

Mention their name when making a speech

Put their logo on your website or promotional materials

…and don’t forget to ask how they’d like to be recognized!

Planning Special Events

The Harsh Reality:

Special events are an inefficient way to raise

money.

So why do people do them?

To attract new donors.

To engage current or past donors.

To have fun.

To reinforce your mission.

To generate publicity.

If done correctly, to raise funds.

Generating funds through special

events

Event Sponsors

Remember those ideas about finding your corporate donors?

Tickets

Factor in the per-person cost

Also factor in the financial capability of your audience

Auctions, Raffles and Ad Books

Ask people in your network to contribute

Research who has contributed to other events

Think of customer bases that overlap with your likely guests

The importance of your event

team

A strong event team:

• …has a clear plan and group buy-in.

• …has a strong leader.

• …has enough members for each person to take on the workload they

would like.

• …has a range of talents and interests.

• …can get the word out to potential sponsors and attendees.

Planning and Follow-Through

Creating a budget and task list

• Involve the whole team

• Make sure everyone knows

• Update regularly

Frequent communication among the team

• Make it regular

• Make adjustments as necessary

• Celebrate success

And remember…

The event is the beginning, not the end.

• Follow up with guests

• Follow up with sponsors and other donors

• Take notes for next time

• Set up your team for future engagement

Fundraising Trends

Cause-Related MarketingMarketing in which a for-profit organization,

by using the name of a not-for-profit organization, promotes its product and in return provides financial support to the

organization according to a predetermined formula based on sales and purchases.

- The Association of Fundraising Professionals Fundraising Dictionary Online

Establishing a cause-marketing revenue stream:

• Identify a corporate supporter whose target customer base relates to your nonprofit

• Be prepared to explain how the partnership would benefit them

• Work with an attorney and an accountant

Earned IncomeMoney received by a person or

organization for product sales or servicerendered.

- The Association of Fundraising Professionals Fundraising Dictionary Online

“According to the Center on Nonprofits and Philanthropy,

private-sourced feed for goods and services made up more than 45 percent of total nonprofit sector

revenue in 2010.”

Richard Tait, “The Importance of Earned Income in Your Funding Model,” The Stanford Social Innovation Review, Nov. 7, 2011

Establishing an earned income revenue stream:

• Identify what product or service you can reasonably provide.

• Confirm that there is a demand for that product or service.

• Work with an accountant.

Finding an idea for earned income

New products for new

customers

Find new customers for existing products

Develop new products for existing customers

Improve profit from current earned income activities

Source: Louisiana Association of Nonprofit Organizations“Fund Development: Diversifying Your Portfolio: A Framework for Sustainability” (2012)

Social Media FundraisingCrowdfunding

Twitter and Facebook

Multi-Channel Fundraising

Examples of nonprofit crowdfunding platforms:

Crowdrise

FirstGiving

Facebook Causes

Twitter & Facebook

The fastest growing demographic on Twitter is the 55–64 year age bracket.

This demographic has grown 79% since 2012.

The 45–54 year age bracket is the fastest growing demographic on both Facebook and Google+.

25% of smartphone owners ages 18–44 say they can’t recall the last time their smartphone wasn’t next to them

Belle Beth Cooper, “10 Surprising Social Media Statistics That Might Make You Rethink Your Social Strategy,” Buffer, July 16, 2013

When and How Often??

Facebook: No more than 3x/ dayTwitter: At least 1x/ day

Mornings: 8:00-9:00 a.m.Lunch: 12:00-1:00 p.m.

End of Day: 4:30-6:00 p.m.Nights: 9:30-11:00 p.m.

Source: “Fundraising With Social Media,”Presented by Social Media for Nonprofits, Freer Sackler Galleries and the Razoo FoundationGreater New Orleans Foundation’s Organizational Effectiveness program, 2013

Multi-Channel Fundraising

A donor is more likely to give when he or she has been asked multiple times through multiple

methods

Different people respond better to different types of asks

Coordination and list management are key

Fundraising 101: Some Closing Thoughts

Know where you are.

Create a team.

Create a plan.

Work the plan.

Don’t forget the data.

Recommended Fundraising & Non-Profit Resources:

Greater New Orleans Foundation's “Needs Scan Report” & Primers (gnof.org)

Kim Klein's Fundraising for Social Change

Giving USA (www.givingusareports.org)

Next Steps

Revisit Parking Lot

Evaluation Questionnaire

One Thing I Will Commit to Doing

One Word that Best Reflects My Experience Today

Greater New Orleans Foundation ~ 1055 St Charles Ave, Suite 100New Orleans, LA 70130 ~ (504) 598-4663 ~ gnof.org

The Funding Seed ~ P.O. Box 52154 ~ New Orleans, LA 70152(504) 307-7220 ~ thefundingseed.com