Fundraising I: Tried & True Fundraising I: Tried & True Keys to SuccessKeys to Success
6th Annual Club MACJune 15, 2006
Carole V. Rylander, CFRErylander associates214.348.9086 [email protected]
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Keys to Fundraising Success
Organizational Readiness
Adopting a Marketing Mentality
Creating a Compelling Case for Support
Establishing Benchmarks & Measuring Performance
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Begin with the end in mind. -- Stephen
Covey
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Fundraising Essentials
A Good Cause (what will change)A Natural Constituency (who cares)A Time Frame or Deadline
(urgency)A Dollar Goal (how much is needed
to create the change)?
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Critical Concepts
Synergy
KeysPlanningSystems
Funds Development is a process, not simply an activity
Relationships & Matching
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Key #1:Strategic Planning
Vision
Mission
Strategic or Long Range Plan
Goals and Objectives
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Fundraising Follows thePlanning Process!
Fundraising & Operating Action Plans
Strategies and Tactics
Budget
Case Statements
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Mission, Vision, & Strategic Planning
A primary responsibility of the BoardVerifies the relevance of the
organization to the communityStaff is involved, especially with
action planningThe process of creating the
plan is as important as the outcome
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Key #2: Adopting a Marketing Mentality
Constituency Mapping
Jargon
Five Steps to Marketing
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Constituency Mapping
Theory of Concentric Circles
Importance:Divides a Large, Diverse
Constituency Base Into “Like-Minded” Groups
Identifies Each Group’s Level of Involvement
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Constituency Mapping
Importance (cont.):
Acknowledges Each Group’s Differing Perspective and Language
Enables the Delivery of Focused Messages Designed to Stimulate a Specific Response
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Constituency Mapping
Importance (cont.):
Ensures that Resources and Efforts are Directed Towards Groups Appropriately - According to the Value of their Response
Constituency Mapping Exercise
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Constituency Mapping
Step 1 Identify all “like-minded” groups in your organization’s universe
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Constituency Mapping
Like-minded groups are not just “individuals,” but groups of individuals who : Have the same relationship to the
organization, Use the same language, such as
physicians, teachers, city council members, or
Interact with your organization in the same way
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Constituency Mapping
With financial resources Who provide earned income (fees,
tickets, etc.) With whom your organization
partners (a non-financial, strategic relationship)
Step 2 Using three differentcolors, circle constituents:
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Constituency Mapping
Some constituents will have all 3 colors of circles.
Step 3 Create a legend so you’ll know what your colors mean.
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Jargon
Definitions:The technical terminology or
characteristic idiom of a special
activity or group
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Jargon
Definitions: (cont.)Obscure & often pretentious
language marked by circumlocutions and long words
A confused unintelligible language
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What Jargon Do You Use?
Identify Jargon:Create a ListReview Your Document(s) & Circle
Jargon
Redefine JargonIn Every Day Words
“Grandmother” Principle
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Marketing
Marketing is all about exchanges.
Marketing is a process that helps
you exchange something of value
for something you need.
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Selling vs. Marketing
SELLING MENTALITY is Rooted INSIDE the Organization
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Selling vs. Marketing (cont.)
MARKETING MENTALITY is
Based OUTSIDE the
Organization—In the
Marketplace
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Marketing: Step One
LISTEN to your Constituency!
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Marketing: Step Two
SEGMENT Your Market
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Marketing: Step Three
STRATEGICALLY TARGET
Those Segments with the
Highest Potential
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Marketing: Step Four
POSITION the organization:What does it do well that
matters?
How does it compare to what other organizations do?
How does it distinguish itself?
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Marketing: Step Five
COMMUNICATE the Special
OPPORTUNITIES your
Program Presents in Terms
That Matter to the Target
Groups
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Marketing: per Peter Drucker
“The aim of marketing is to
know and understand the
customer so well that the
product or service fits them
and sells itself.”
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A: By creating an urgent and compelling Case for Support!
Q: So, how do I develop effective marketing messages that motivate potential donors to action?
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Key #3: Creating a Compelling Case for Suppot
Definition:
A carefully prepared document
that sets forth, in detail, the
reasons why an organization
needs-- and merits-- financial
support . . .
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Case Statement: Definition
...In the context of the “case is bigger than the institution,” it documents [the organization’s] services, human resources, potential for greater services, current needs, and future plans.
–From Glossary of Fund Raising Terms,a publication of AFP
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What We Hear
All The Time…
vs.
A Compelling Story!
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There is no perception
unless there is contrast.–Ralph Coverdale
in Risk Thinking
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The Case Statement Is. . . . .
An internal document
An investment prospectus
Prepared by the development office
The basis for all marketing, communications, program, & development materials
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The Case Statement Is. . . (cont.)
Both rational and emotional
Optimistic
Brief
Easy to interpret and remember
Larger than the institution and has broad appeal
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The Case Statement Is. . . (cont.)
The single most important document in the fundraising effort!
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Elements of the Case for Support
1. What is the organization’s mission?
2. What has the organization accomplished thus far? (its history)
3. What does the organization do and how is it structurally governed?
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Elements ofthe Case for Support (cont.)
4. What is unique about your organization or proposed project?
5. What is the problem? What need does the program for which you are seeking support address?
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Elements ofthe Case for Support (cont.)
6. Who is affected?
7. What solutions does the program offer?
8. What methods will the program offer?
9. What results have been achieved thus far?
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Elements ofthe Case for Support (cont.)
10. What resources and funds are required and how will they be used?
11. What endorsements and support have already been provided for the program? How much? From whom?
12. What is in it for the donor?
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Giving Opportunities(What’s In It for the Donor?)Are drawn from the Case
Statement
Can Represent a wide range of appealing fundable Items - $50 to $25,000+
Fulfill Baby Boomers’ needs to know their gift provided specific tangible benefits
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Case Preparation
Written by one person
New rationales will emerge during process
Adaptable to many uses & formats
First draft—then edit, edit, edit
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Case Preparation (cont.)
Circulate draft
Adopt as a policy document
Update periodically
Use it with staff and volunteers
Create case statements for each program area
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Uses of the Case Statement
Provides common language for board members
Is the basis of proposals & brochures, as well as program & campaign materials
Assists in leadership & volunteer recruitment
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In Summary, A Case Statement
Is designed to:Substantiate an organization’s
opportunities and attributes,
Define benefits to the contributor, AND…
Stimulate a monetary response!
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In Summary, a Case Statement Is A Must:
The relationship between
programs, needs, and benefits to
donors must be communicated in a
persuasive “case” that motivates
the potential donor to action!
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Case Statement Handouts
Elements of the Case for SupportSamples:
The Case for the Building Program of Los Barrios Unidos Community Clinic
Los Barrios Unidos letter proposalThe Case for the Anita N. Martinez
Ballet Folklorico
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Key #4: Measuring Program Performance
Provides evidence of impact
Justifies the organization’s value
Directly links gifts to impact
Strengthens relationships with funders
Is essential for renewing gifts
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ProgramPerformance Metrics
Handout:Star/AmeriCorps Evaluation Plan
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To Learn More . . .
Association of Fundraising Professionals (AFP) 25,000+ members mostly in the US,
Canada & MexicoWeb Site: www.afpnet.orgInternational Conference attended
by 4,000+ in spring of each yearDallas Chapter = 300 members
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To Learn More . . .
Center for Nonprofit Management
Local organization whose mission is to increase the capacity of nonprofit organizations to serve the community
Web site: www.cnmdallas.org
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To Learn More . . . BoardSource:
is a 501(c)3 nonprofit organziation dedicated to improving the effectiveness of nonprofit organizations by strengthening their boards of directors.
www.boardsource.org
Individual membership = $139 year
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Thank you!