Fundraising for nonprofit arts organizations, Getting started

CREATING & DIVERSIFYING REVENUE:

CREATING A FUNDRAISING PLAN TO DO IT

You’ve gotta move fundraising from

a technical, administrative function

to a central, leadership priority.

80% 20% EXECUTIVE

DIRECTOR

DEVELOPMENT

STAFF

FEWER

RESOURCES,

GREATER NEEDS

EVENTS

TRANSACTIONS

REPORTS

EXPLANATIONS

CHIEF EVERYTHING

OFFICER

MORE RESOURCES,

DIFFERENT NEEDS

HIGHER GOALS, EVEN

HIGHER

EXPECTATIONS

OVERLAYING NAT’L AVERAGES

YEAR DONORS AVG GIFT REVENUE

LAUNCH 10,000 $200 $2,000,000

2015 4,100 $224 $918,400

2016 1,681 $251 $421,931

2017 689 $282 $194,298

2018 281 $315 $88,515

ATTRITION: 59% & GIFT INCREASE: 12%

CONSEQUENCE

ALTERNATIVE

PLAN

BEFORE AFTER

INC

OM

E

$335K

$518K

COMING FROM

GRANT

SPECIAL EVENTS

DIRECT MAIL

GIVING TUESDAY

COMING FROM:

BOARD ENGAGEMENT

SIGNATURE EVENT

MAJOR GIFTS

ANNUAL FUND

FOUNDATIONS

PEER-TO-PEER GIVING

PLANNED GIVING

RETAINED DONORS

SUPPORT TO DIVERSIFY REVENUE

Understand the elements of a case for

support in the Post-Art for Art’s Sake Era

Understand how to assess fundraising

potential to set realistic goals + get buy-

in.

Understand how to create a fundraising

plan and why it is important

EFFECTIVE CASE FOR

SUPPORT

HOW IS IT USED

1. Recruit + align board members

2. Question No. 1 in grant proposals

3. Basis of individual appeals

4. Context of annual report + program eval

5. Personal frame of reference + gut check

YOUR HISTORY

Why and how did you come into existence?

What issues caused your formation?

What is your incomparable mission?

Remember, you are making the case for

your future and your dreams – not your

distinguished past.

YOUR ARTISTIC PURPOSE

What happens when you fulfill your purpose?

Who benefits and how do you know?

Who are the stakeholders in your purpose?

Why do they care if you’re successful?

What do you do that can be applied

elsewhere?

YOUR UNIQUE ROLE

Why are you best qualified to do it?

Who is leads your art + your admin?

On what will you spend + leverage funding?

Do you have a track record, if not who does?

YOUR PLAN + GOAL

Who will help you fulfill your goal?

Why will or do they support you?

How will you know it’s working, succeeding?

How will you communicate progress?

CREATE YOUR STORY OF US

We are the only _________________________ that(WHAT ARE YOU?)

can_____________________________ for _________________________ in our

(DO WHAT?) (WHO?)

____________________________. Last year, we _______________________

(WHERE?) (DID WHAT?)

for ______________________________ which means ___________________

(HOW MANY?)

___________________________________________

FIRST TAKEAWAY

YOU GOTTA BE ABLE TO ADDRESS

A CREATIVE NEED, NOT JUST A

DREAM

SECOND TAKEAWAY

EVERYONE IN YOUR

ORGANIZATION NEEDS TO BE

ABLE TO KNOW IT AND SAY IT.

ASSESSING POTENTIAL

Want to enhance their performance

experience

Want recognition from community and

desired peer group

Want access to those that are

performing and creating

UNDERSTAND WHY THEY

GIVE

BACK OF NAPKIN

DIVERSIFICATIONTop Line Fundraising Question Answer

How many households bought ticket in the last fiscal year? 200

How many made a gift in the same period in addition to buying a ticket? 30

How many gifts did you receive in the previous fiscal year from:

Board members 10

Individuals 45

Sponsors 4

Small businesss 6

Private foundations 2

Government 1

Special events 80

What is the total amount of dollars you raised in the previous fiscal year? $65,000

How much did you spend on fundraising in the previous fiscal year (not including staff/time? $20,000

DIVERSIFICATION

What are the primary sources of your funding

What is the current diversification ratio?

Where are our growth areas?

Given existing time and resources, where

should we focus?

GROWTH

What is the year-over-year rate of growth?

What has and will impact that growth rate?

At what rate does that need to grow to achieve

our goals?

How long does it take for any investment in

growth to become cash?

ASSETS

What do patrons (not you) love about our

organization?

What do these patrons say to the friends and

family about us?

What can we say we’ve truly accomplished?

Who can help us credibly make the case?

PERFROMANCE

How many ticket buyers come back for every

performance?

How many of those ticket buyers give?

How many do both?

How many do both every year?

CREATING THE PLAN

HOW IS IT USED

1. Align resources to what works + is

possible

2. Create culture of managing, not reacting

3. Focus + inspire board of directors

4. Instill confidence in funders

5. Provide rigor + structure to ideation

THE SMART & EASY PLAN

1. Identify goals & accompanying metrics

2. Pair goals with tactics, strategies

3. Collaborate on one calendar

LET’S BUILD ONE!

TERMS TO KNOW

TEMPLATE