2015 Fundraising Plan

1Executive Statement Board Members and Executive Director of The Wrens Nest,Hello my name is Katy Gardner. I have been asked to consult on the current state of fundraising of the organization and offer recommendations on what The Wrens Nest can do to improve its fundraising prospects. Over the past 10 weeks I have reviewed the current standings of The Wrens Nest and current programming, financial and fundraising efforts are not enough to keep the organization alive. Over the past three years the company has run a deficit and taken on more debt than it can handle. And even though revenue increases annually so do expenses. Program missions and goals are noble and work to better the community but without the support of donors in that community those efforts go under utilized. Currently there are no donor acquisition campaigns through letters, emails or events. Fundraising documents are out of date and confusing and proper measures in prospect research for grants and major donors are not being upheld. The Wrens Nest is currently in an identity crisis. Much of this confusion comes from the fact that the organization does not have a clear vision of what it wishes to accomplish. This is reflected in their vague mission, strategic plan and informational documents. The organization is at risk of not being able fund its programs and possibly closing its doors if the situation does not improve. However this means that there is a large potential for growth and improvement if the proper measures are taken.Through extensive research and observations I have identified several areas in which The Wrens Nest can improve its fundraising and future support. Included in this fundraising plan is an extensive examination of current financial and fundraising situations identifying areas for opportunity and growth as well as recommendations as to how The Wrens Nest can best utilize their resources to secure funding. Also enclosed with this report are several fundraising documents to serve as examples of how to properly solicit donations from various sources. It is my hope that with this knowledge and recommendations that The Wrens Nest will be able to move forward and grow to become a healthy and thriving organization. With proper funding and support your organization can grow to service not just West End but the entire Atlanta region.

Table of Contents Executive Statement ..1Table of Contents .2Organization Goals and Objectives 3-4Current Fundraising Conditions .5-20Financial Perspective ..6-17Summary of Past and Present ..6-11Comparative Date Related to Industry ...12Analysis ..13-15 Other Trends Impacting Unearned Income .16-17Non-Financial Perspective ...18Evaluation of Transparency and Governance ..19-20Fundraising SWOT Analysis ..21-22Financial Strengths and Weaknesses .21Non-Financial Strengths and Weaknesses .22Opportunities and Threats ..22Recommendations ..23-27Campaigns ..23-24Fundraising Documents .24Prospect Research .25Individual and Major Donors .....25Corporations and Foundations .....25 Grant Writing ...26General Fundraising Efforts 26Board Involvement ...27Conclusion ..27Campaign Materials 28Conclusion 292

3Currently the biggest obstacle facing The Wrens Nest is that they themselves dont know who they are or what they stand for. History tells us that The Wrens Nest exists to preserve the home and memory of Joel Chandler Harris and African American folklore and traditions. They have also recently started offering literacy programs for local middle and high schoolers. At first glance these three topics have nothing in common and currently only two of them are reflected in the mission statement of the organization. Educational programming is not mentioned at all, however it is the most extensive program that the organization offers. This kind of identity crisis begins with an organization trying to do too much that is not central to its mission. And if the organization itself is unclear as to what they are doing and why, it certainly comes across that way to the public and only serves to create confusion and a lack of interest in that organization, no matter how noble or honorable its intentions. The best way to remedy this is for an organizations Board of Directors and top leaders reexamine the goals and objects that the organization would like to accomplish and evaluate how those reflect and further the mission of the non-profit. In the case of The Wrens Nest it call seems from the beliefs of Joel Chandler Harris, not the man himself. It is an important part of Georgian and National history to study the life of the great author and his works, but the focus needs to be on his beliefs and his legacy. His belief that anyone, no matter how poor or uneducated could learn to read is the reason that The Wrens Nest seeks to educate local children and teens about the joys and benefits of writing. His belief that the African American culture was important enough to preserve through time, that is the reason the organization continues the oral tradition of storytelling. This way the goals of The Wrens Nest are about more than just a man, but a set of morals and beliefs that are timeless and drive the organization forward to provide a better future. The best way to for the organization to do this is for the Board to examine what beliefs and morals they want to uphold and how those morals relate to the goals they want to accomplish as an organization. All of this should be examined and set forth in a strategic plan with goals and objects, methods as to how those goals are going to be met and when those goals are going to be met. The strategic plan should then be examined and reevaluated at least once a year to determine how well the organization is doing in meeting its goals and what needs to be done to ensure that goals are meet and exceeded in the future. All of this information should then be condensed into a new revised mission statement to communicate the organizations values and goals. This may seem simple, but it can make a huge difference. What you do and why should be the absolute first thing that someone knows about the organization and there should be no doubt in their mind about what you do. This allows them to get to know you, to connect their personal beliefs with yours and then begin to grow and support you both intellectually and financially. Organization Goals and Objectives

4Revised Mission Statement :Our mission is to promote, educate and expand the tradition of oral history and storytelling as well as authorship through historic preservation, educational programming for children and young adults, learning and career development opportunities and publications. Example Fundraising Goals and Objectives:Expand the Current Donor Pool by 15% in 5 yearsRun bi-annual (2 times a year) donor mailing campaigns to cultivate potential donors and membersRun email campaigns to solicit donors onlineRevise fundraising materials and documents so that they are up to date and engaging for potential donorsIncorporate fundraising efforts into community events held at The Wrens NestIncrease donor gifts by 5% in 5 yearsStart and email and newsletter initiative to keep donors engaged and up to date on current events with the organizationIncrease prospect research into potential major donorsIncrease stewardship initiatives and cultivate major donors through events and personal meetingsIncrease and Diversify Grant Funding for the Scribes and High School Publishing ProgramUtilize local resources from The Community Foundation and the Foundation Center to research current trends and issues involving grant funding Use established databases to research prospective grants that align with our mission and goals Cultivate relationships with prospective foundations through their proffered methods of contact Establish schedules and deadlines for grant applications to ensure that they are written and completed in a timely manner

5Currently fundraising efforts are minimal and not effectively funding the needs of the organization. This is partly because of the lack of established and communicated values of The Wrens Nest to the public; that includes donors. Without an emotional connection to the cause that you support, donors are unlikely to give and if they do it will not be nearly as much as it would be if they were cultivated with a value based approach. The Wrens Nest also is not taking any major strides in cultivating more donors. There are currently no known letter writing campaigns or membership initiatives being solicited to the public to get people interested in donating. Research and cultivation efforts are not being put in to the donors that are currently with the organization and proper measures are not being taken to move those donors to major giving status. Without the leadership of a Development Director the organization is floundering and having difficulty approaching potential donors and keeping and moving them through the donor cycle of gradually becoming more and more invested in the organization. Most donation solicitation is being done online, which is a great tool, but most of the time these donors have had very little contact with the organization. They are not present to see the beautiful house or hear the storytellers in person so they are unlikely to give much in the way of a donation. Donors give because there is a personal connection between them and the people who run an organization. The Wrens Nest needs to go out and work to establish that personal connection with as many people as they can through letters, emails, events and stewardship to attract and establish supportive, long-time donors. Current Fundraising Conditions

6Fig 1BudgetThe most concerning aspect of The Wrens Nests finances is that they are consistently operating above their budget. For the past three years revenue has been steadily growing, however so have the expenses. (Fig 1) In 2011 expenses exceeded the revenue by 14%, leaving a $27,348 deficit. This gap in income and expenses has been slowly shrinking with 2013 ending in a $9,728 deficit (a 4% difference), but this is the kind of occurrence shouldnt be a trend or slowly made up for. Every precaution and measure needs to be taken to ensure that the company does not operate on a constant deficit and the issue should be rectified as quickly as possible. The budget should be reviewed and adjusted no less than once a quarter. Financial Perspective: Summary of Past and Present

7Where is the Money Coming From? For the money that is coming in to The Wrens Nest, it is actually rather diverse in its sources. As shown in Fig ??? 41% off all income is from individual donations and contributions and another 18% is coming from earned revenue (tour and book sales, merchandise, rental etc.). These income sources make up the first and third largest contributors to income. This is a good indicator as these methods should be the highest contributors to an organizations income. Donor contributions and earned revenue are the areas of income that the organization has the most control over. You can monitor you own donor acquisition and stewardship efforts as well as promoting the programs that generate revenue. This way if the government does decide to cutback on grant funding or the organization is not approved for the foundation grants it was hoping for it is not such a huge blow to the organizations funding. That being said there are still several concerns with this information or lack thereof. Very little information is given about the break down of each of these categories of giving beyond their total. Going off of the information provided in the companys most recent 990 it shows a very different picture.Financial Perspective: Summary of Past and Present

8In Fig ??? we can see that most major gifts are actually coming from corporate, government and foundation sources. This shows more dependence on these types of funding than an initial examination of sources would have. This shows that even though, as a whole, individual contributions are making up a large percentage of income, it is coming from smaller donations, not major gifts. The Wrens Nest is reliant on government and foundation grants for large sums of money to pay for operations and programming. Were these to be taken away it is questionable if the organization would be able to operate without them. Financial Perspective: Summary of Past and Present

9Financial Perspective: Summary of Past and Present

10Where is the Money Coming From? The next step in the process is understanding where the income from individuals, revenue and grants is being spent. Over the past three years The Wrens Nest has been consistently spending over 75% of its expenses on the programming it provides. This should be a major focus for organizations as their programming is what helps them accomplish their mission. Still 75% for an organization that is consistently operating on a deficit raises some questions. Information can be found on the breakdown of costs and how much is spent for certain needs, but the company needs to internally examine how efficient it is being with what it has. Is it really necessary to spend the money that is being spent or can measures be taken to increase how effectively resources are being used so you can cut down on costs? The salary component of program expenses has been broken out to illustrate an important component. Salary costs have been growing exponentially over the past three years. In 2013 it surpassed not only other programming expenses, accounting for over half of total programming, but all other expenses for the organization. The major question here is this due to program expansion and more teachers, or are the teachers getting paid more over the years? Financial Perspective: Summary of Past and Present

11While salaries are going up other program expenses are going down. The company is also not publishing any other numbers regarding the program, such as number of students served, number of mentors working for the program, how many storytellers are performing and how regularly. Without this supporting information it is impossible to tell if the program is actually growing or not. That makes these numbers seem suspicious and warrant some examination and follow up to what is going on with all of this money that the company is spending. Another concerning aspect is how little the company is spending on fundraising. It may seem counterintuitive for an organization to cut program or operational expenses and increase fundraising efforts, but investing in fundraising and marketing is investing in the longevity and life of the company. If very little time and effort are spent on cultivating donors and people who are interested in the programs that you offer very soon there wont be any programs to fund. Donors, particularly major donors, take time and effort to cultivate but once they are emotionally invested in the company it will be much easier to secure greater funding for your programming and operations from your donations. Dont ignore potential donors just to give more money to programming. Chances are you are going to make that money back through donations; it just takes some time and planning. Financial Perspective: Summary of Past and Present

12So how does the Wrens Nest compare to other similar institutions? Small house museums like the Wrens Nest generally have two options when it comes to resources: they can try to operate on their own and find a way to generate income, like the Hammonds House Museum and Gallery, or they can partner and attach themselves to a larger institution to share resources, just as the Margaret Mitchell House is a part of the Atlanta History Center. 2012 figuresNet Assets% of Fixed Assets to Total Assets% Program Expenses to Total Expenses% Gen/Admin Expenses to Total Expenses% of Salary to Total Program ExpensesWrens Nest$202,91693%76%18%47%Hammonds House$365,57316%72%17%58%Margaret Mitchell House (ATL History Center)$94,534,46227%66%28%/When comparing the Wrens Nest to these other two organizations they do appear remarkably similar. The percentage of where expenses are spent is fairly consistent and the Wrens Nest is even doing better in some respects. However the difference comes down to the amount of assets. Wrens Nest is the lowest with the Hammond House not too far behind and then of course the History Center far surpassing both of them. At first glance the Wrens Nest isnt doing so bad for its size, until the amount of fixed assets are taken into consideration. The Hammonds House Museum has 16% of their assets fixed and the History Center is slightly more at 27%, which is reasonable due to its size. The Wrens Nest on the other hand has 93% of its assets fixed in the one building. Having this high percentage of fixed assets is an indicator of cash flow problems that can greatly reduce the organizations ability to pay bills and fund operations. And continuance of this kind of financial issue without trying to rectify it is only prolonging the problem. Financial Perspective: Comparative Data Related to Industry

13Financial Perspective: Analysis Fig Statistic/Year201120122013Working Capital*$216,195($1,635)$15,136Current Ratio**3.66.882.53Solvency: Debt-Asset Ratio***.27.33.33% of Fixed Assets to Total Assets99%93%89%Solvency: Debt-Equity***.36.5.5*Higher the $ amount the more liquid the company** Number should be at least 1 to be liquid***Number should be below .4An important aspect to be considered when examining the financial health of an organization is the corporations current assets and liabilities. Not to be confused with income and expenses, assets and liabilities allow us to examine the companys debt versus what it owns. The financial ratios working capital and current ratio examine all current assets and liabilities (those being used within the year). Working capital is simply how much more money does the company have in current assets than it does in current liabilities. This number should be as high as possible. Current ratio also examines current assets and liabilities and interprets their ratio in decimal form and should at least equal 1. These two numbers tell us how liquid a company is, how much cash they have on hand and if they can pay their liabilities within the coming year.In The Wrens Nests case there has been some major fluctuation in these numbers over the past three years. 2011 and 2013 are very liquid and show that the company can easily pay its short-term debts. 2012 however more money was owed overall than what the company had. This could be a one-time occurrence and more detail about that specific year would be needed to fully examine why that was and if it is something the company should expect to happen again.

14Financial Perspective: Analysis Solvency on the other hand examines the companys long-term liabilities and if it can pay its long-term debt. This number should be below .4 to indicate if the debt could be paid off. The Wrens Nest is doing well in this aspect too, even though there is a major $80,000 loan that still needs to be paid off. However much of this has to do with the companys major fixed assets.The Wrens Nests greatest asset is the house and the land itself. This is not uncommon for a house museum simply due to the nature of the work they do, however these numbers are somewhat concerning. When examining the percentage of fixed assets compared to total assets it is alarmingly high, making up 89%-99% of all assets. Whats more is that the house is almost completely depreciated. The land my appreciate in value, but in a few years the house will be only be worth the salvage value as far as assets go. Knowing this, and the fact that not only would it be difficult, but very unlikely for the organization to liquidate by selling the property to pay off its debts, this gets to be very concerning.

15Financial Perspective: Analysis Another way to look at solvency is by examining total liabilities compared to Net Assets (Total Assets- Liabilities). This is Debt-Equity ratio and like Debt-Asset it should also be below .4. For The Wrens Nest this criteria is met in 2011 but in 2012 and 2013 they cross the threshold with a .5. Now this is not far off from where it should be and is most likely due to the major loan that became a long-term liability in 2012. From examining assets and liabilities the company is doing pretty well and even though they are beginning to take on more debt than they should, it is still not too crippling at this point. So something can be done to get finances in line to move toward a financially healthier organization. Unfortunately when expenses and revenues are examined we dont see that happening. Fig Statistic/Year201120122013Profit Margin-16.9%-14.2%-4.3%A good way to examine the relationship between revenue and expenses is by looking at the profit margin. The best way to examine profit margin is for the Board of Directors to agree upon a set profit margin that they would like to adhere to. For The Wrens Nest is this probably going to be very low considering that they are a non-profit. However this ratio should never be negative and unfortunately this is what weve been seeing over the past few years. This is because The Wrens Nest is not operating within their budget and are consistently loosing money by providing the programs that they offer. This is the major issue that is going to slowly chip away at all current assets and make it impossible to pay off any and all liabilities the company may have. Throughout the past three years we see the profit margin getting closer to breaking even, but operating outside of your budget and overspending should be a problem that is handled quickly and aggressively, not slowly taken down over time. This will allow the company to quickly get back on its feet and stay solvent so that it have slowly work off debt.

16Financial Perspective: Other Trends Impacting Unearned IncomeSince 2010 non-profits have been facing more and more difficulties in acquiring income. With the economic crash and slow recovery competition for grants have become more and more aggressive. Deep cuts in spending and grants not only affected the government but also corporations and foundations. Non-profits were left with nowhere to turn and found themselves competing for less and less money against more and more applicants. Relationships between non-profits and donors also became tense. As more of the financial burden of non-profits was passed to them, donors were stuck trying to manage their own personal finances and losses. Donors that did give were more specific about how their dollars were to be spent, cutting down on the amount of unrestricted funds used to cover operational and management costs for organizations. All of these cuts were particularly bleak for the arts. Spending priorities were shifted to cover necessities such as healthcare, while cutbacks in luxuries and education were steep. Government arts funding hit a record low in 2011 and is currently slowly making a recovery. Non-profits in Georgia and the Atlanta area were hit particularly hard by this. Georgia alone has sixteen of the top 400 non-profits in the US and five of the top 20 (more than any other state), four of which are in Atlanta. The American Cancer Society, Habitat for Humanity and the Task Force for Global Health are all major players that reside in the Atlanta area. Most of these large non-profits are in the healthcare or human services sector which has always attracted more funding and is a major force to compete with when grant dollars are stretched thin. Georgia is currently ranked 50th in the US in arts funding. And despite outcry and efforts by the local art community prospects of this going up are slim. Organizations are being put under greater and greater scrutiny to be transparent and marketable to foundations and grant makers. Sadly this is something that The Wrens Nest is having difficultly with. Not only are they up against some of the biggest non-profits in Georgia, but also major art organizations such as the Woodruff Arts Center. The Wrens Nest has very little presence amongst local organizations and constituents and its lack of transparency makes them unlikely competitors for grants. Another major aspect that has held The Wrens Nest back from competing for a local presence is its history and local perception. The Wrens Nest has a checkered past full of racial tension. Criticism against Joel Chandler Harris for becoming famous off of stories he learned from black slaves and well as perpetuating black stereotypes have plagued the authors legacy for decades. And despite being in a predominantly black neighborhood, blacks were not allowed in the establishment until 1984.

17Financial Perspective: Other Trends Impacting Unearned IncomeAlthough the organization has done away with these old policies and began moving forward the stigma still lives on. In an article for USA Today former Executive Director Lain Shakespeare described the reaction a girl scout trouble leader had when she suggested that the girls take an educational trip; parents grew quiet and the room grew tense with her suggestion. This is the kind of stigma that still exists. The Wrens Nest has done its fair share of educating and telling their side of the story with a 5-part essay entitled Everything You Know About Uncle Remus is Wrong and supporting literature like Brer Rabbit, Uncle Remus, and the Cornfield Journalist: The Tale of Joel Chandler Harris by Walter M. Brasch. However in order to have your side of the story heard you have to get people to come out to your establishment and listen. The full analysis of this issue is beyond the scope of this fundraising plan, but it is still a major contributing factor as to why finding community and public support is difficult for The Wrens Nest. The past is the past, but the organization needs to find a way to differentiate itself as well as its history and heritage from current negative connotations.

18The strongest tool that The Wrens Nest has working for them right now are their literacy programs. The Scribes and High School Publishing programs are the two major causes that the organization supports. Not only are these programs inspirational and educational for the community, they are also very marketable to donors and grant funders. Both literacy programs mentor and assist young local children and teens and encourage them to further their education. The West End neighborhood where The Wrens Nest resides has some of the most disadvantaged schools in the district and supplementary programs are sorely needed. The Wrens Nest is filling a dearly needed service. But there are a few problems associated with this kind of program. It is hardly sustainable. As of right now there is very little cost associated in enrolling for the Scribes or High School Publishing program making it available to children who otherwise would have no means of taking advantage of such a program. And instilling or raising enrollment fees could be detrimental to the program and the mission that it serves. This can be difficult for an organization to overcome because they will constantly need outside support from foundations and donors. The good news is this is the kind of program that is easily marketable to grant funders and donors. It is much easier to form an emotional connection and statement of need for a program that promotes education to children. Finding support for this kind of programming is easily executed with the right planning and tools. Other programs such as the house tours, storytelling and rentals will need to be marketed to individuals. Because they generate revenue the focus for these programs needs to be placed on sustainability through providing these services to the public. Greater effort will need to be placed on marketing, execution and customer satisfaction than funding these programs through unearned income such as grants and donations. If these programs can become self-sustaining than that will take a lot of financial pressure off of donors and grants and those sources of income can be focused on the literacy programs and operation expenses. Non-Financial Perspective

19Evaluation of Transparency and GovernanceNon-profit organizations must maintain the highest degree of transparency at all times. Lack of transparency leads to distrust and potentially scorn of an organization. As an acceptor of federal, state and public funds a non-profit must report all of its governance and make it publically available. This not only allows people to see their money at work and what is being done with it, it lets them know that you have nothing to hide. Financially the company is very transparent. All important files and documents can be found on their website and Guidstar. Most of these documents are straightforward and easy to read, although lacking in some clarifying information (mostly from later 990 forms). Governance of the organization is much harder to establish through the information provided. By examining the 990s over the past few years it looks like the Board has changed slightly, moving from fourteen to fifteen people in 2013. There are a few new and missing names in the past few years so there has be some Board turnover. However, even though 990s and the website specify that there are fifteen members on the board the website only lists nine names and affiliations listed. There is also very little clarification as to the duties of each person on the board with most being listed as a director and one person listed as Chairman or president. It is also something to be noted that none of the upper management of the organization itself is represented on the Board of Directors. All of these things raise some questions about the governance of the organization and how each person contributes to the Board or how the Board interacts with the employees and management that work at the organization every day. Information about the Wrens Nests other functions however, programs who they serve, strategic plan, etc, is opaque. There is little consistency in what the general public knows about The Wrens Nest and what is being told to them. The organization feels closed off and unwelcoming to patrons and donors alike. And with the organization trying to part itself from a past of racial tension transparency is a huge key in fighting that stigma. Part of the problem is in the uncertainty of what the organizations goals and objectives are. If an organization itself doesnt know what it wants to do then how are they to communicate effectively those goals with their constituents and donor base. Most of the problem however is in the information and materials provided by the organization. There is no way for this information to be communicated clearly if the organization understands them. Once that is accomplished all channels of communication need to be updated and information needs to be easily accessible and understood.

20Evaluation of Transparency and GovernanceFor The Wrens Nest most of the problem is that channels of information are convoluted and out of date. The way most people obtain information about The Wrens Nest is from the website. The website however is difficult to navigate, hard to understand and difficult to find the information one is looking for. Even once someone is able to navigate the site most desired information is out of date or cannot be found at all. Some 990 information is available, but not the most current. The information provided is not as reliable as other sites like Guidestar. While other important documents such as core values and strategic plan are not available at all. The history of the organization and program information is sparse and leave a lot to be desired. Little to no information is available about the $2 million renovation a few years ago. Nothing is said about where the money came from, where it was spent or what exactly was done in the renovation. Another aspect of transparency that is essential is Board membership and involvement. The list of the Board of Directors must be up to date as well as their role and involvement in the organization. Again on the website this information is most likely out of date and difficult to find. All other materials are difficult to find, such as brochures and pamphlets about the organization, and again are out of date. In order to establish and maintain a healthy donor relationship with constituents a bond of trust must be forged. That trust is difficult to gain when information is withheld or miscommunicated. This can lead the organization feeling unwelcoming, closed off and withheld from the public making them uninviting and unappealing to donors. Whats the best way to avoid this? Share everything you do and make it easily available and clear. This shows that you are active in pursuing your mission and you want to share your progress with the world. People are very active on social media and the Internet and you need to make sure that you keep up with them and hold their interest so that they keep coming back. This will all help people get to know who you are, what you do and how you do it. This helps them form a bond with you, one based on trust, and that is how loyal donors are made.

21Strengths:FinancialLarge amount of assets compared to liabilitiesCurrent assets/liabilities are liquidIncreasing earned revenue numbersNon-FinancialGood programs that help support the neighborhood and educationNational Historic Landmark with a long historyWeaknessesFinancialContinuously over budgetLarge amount of debtRelies heavily on government and foundation grantsLarge amount of fixed assetsNon-FinancialSmall donor baseLittle to no marketing or fundraising campaignsOpportunitiesCultivate larger donor baseSolicit larger donations from current donorsEstablish and maintain an operating budgetCultivate more diverse grant optionsThreatsHundreds of other non-profits to compete with in the Atlanta area including major US non-profitsNot competitive within the industryLack of resourcesFinancial Strengths and Weaknesses Financially there is a lot to be changed for the better at The Wrens Nest, but there is a foundation of assets to start with which will make the transition easier. With the assets and liabilities currently under control, the organization can turn its attention to increasing revenue and controlling expenses. Adopting a strong operating budget and internal measures to make sure that that budget is upheld is the biggest weakness facing the Wrens Nest today. The company also relies heavily on government and foundation grants and not enough on donations making them an easy target for budget cuts and reduced spending. Fundraising SWOT Analysis

22Fundraising SWOT Analysis Non-Financial Strengths and Weaknesses The biggest non-financial asset that the company has is its educational programs. These are currently the heart and soul of the organization and are devoted the most resources. They have also beautifully restored the house and have earned the status of National Historic Landmark. Unfortunately they are not putting these strengths to use in securing donations. Proper research and cultivation efforts are not being taken leaving a gap in funding and support. Opportunities and Threats Having a strong operating budget that is stuck to every year is the best measure that the organization can take at this time. Over the past few years the financial situation has been very slowly increasing with more earned and unearned revenue. The majority of expenses are program related, but with earned revenue increasing there is a possibility of those related programs becoming self-sustaining and more of the focus can be placed on the programs that are not generating revenue. This process can be sped up with proper budgeting measures ensuring that the company does not run deficits for another year running. This will give them the financial tools to begin strengthening their finances and paying off their longstanding debt. Another way to financially strengthen the organization is to begin putting marketing and fundraising campaigns and procedures in place. These two areas receive the least amount of funding yet they are directly correlated to how much income the company is making. Without a strong donor cultivation initiative the company will continue to struggle. The biggest threat that the Wrens Nest has is that it is a small fish in a very large ocean. There are much larger non-profits out there with many more resources competing for the same money needed by The Wrens Nest and if they continue to allow their weaknesses to overshadow their strengths they will not be able to continue go up against these large organizations for money.

23Based on the information gathered and presented in this fundraising plan I have compiled my recommendations of measures that The Wrens Nest should take to improve future fundraising efforts. Recommendations are based of the research conducted as well as observations of the organization and usual best practices in fundraising across all organizations. CampaignsAnnual FundThis is should always be the largest and most active fund. This is all unrestricted funds donated and usually goes to cover operating costs. Currently The Wrens Nest is relying heavily on online donations through their website. This is a useful tool however it should never be the primary source of donation solicitation. There are also currently no letter or email campaigns being run at this time. Initiating donor acquisition campaigns should be the primary focus at this stage. The Wrens Nest needs to invest in a larger donor base and they have to do that by soliciting interest from membership campaigns so that these people can be cultivated and engaged in the organization so that they can support you throughout their donor lifecycle. Program/Major Gift Programming currently takes up almost 75% of all expenses and so should receive a major focus in fundraising. Most of the programs and supported by major grants from the governments, foundations and corporations. This is a good start, but there needs to be more diversification in case grants one year fall through. This needs to be done through grant prospect research and major gifts from donors meant specifically for the programs they are donating to. In order to do that the organization needs to have a larger donor pool and conduct research on the best ways to approach donors for major gifts. How to best cultivate major donors and grants will be covered later in this section. Capital CampaignThere are currently no capital campaign efforts right now and all prospects of such a campaign should be held off. Capital campaigns require a strong fundraising base as well as resources, Board involvement, and time. Currently The Wrens Nest is not financially or developmentally stable enough to support the efforts a capital campaign would require and should instead focus their efforts on creating a strong fundraising base.Recommendations

24Planned Giving There are currently efforts to solicited planned gifts to the Wrens Nest, however they are being approached inappropriately. Most mentions of donations on the organizations website are in regards to planned giving or leaving. This should never be the case. Current donors should be approached by offering or asking if they would like information on how to include the organization in their will. The donor should already have an established relationship with you before this information is ever brought up. Fundraising DocumentsFundraising documents for The Wrens Nest are in need of updating and revising. Most current documents contain outdated information and do not offer clear concise information. This includes the website. Currently as the largest fundraising document, the website confusing, poorly organized and severely lacking in information regarding programs, history of the organization, goals and objectives, strategic plan and community involvement. In todays world the easiest way for someone to get to know you as an organization is for them to learn about you from your online presence. You not only need to be clear about who you are and what you do, but you have to do it quickly. Online people spend very little time trying to navigate something that they dont understand; so having a confusing document or page that does not offer instant gratification is going to drive away Internet traffic and people will quickly loose interest. Documents related specifically to donating are virtually nonexistent and the ones that are out there are lacking. There is no current information on donor benefits or levels or what exactly your donation would be going toward. The only donation paperwork available at the museum is a small donor card that just lists donation levels, however it starts at a donation of $100 and goes up to $2500. Not only is it unlikely for a patron to find this piece of paper while theyre exploring the house, it is even more unlikely that they will be willing to donate $100 on the spot when they only paid $7 to enter the facility. The most important points to keep in mind when creating donor documents is to absolutely clear about who you are, what you do, what people can do to help, and why they should help. Being concise and clear on these aspects will help draw donors in. Also be sure to know your audience. Someone asked to donate on the spot is more likely to give between $5 and $25 dollars. Whereas a carefully solicited donor receiving regular letters and email correspondence is more likely to give in the $100 to $1000 range. There is nothing wrong with smaller donors, just have them start there and slowly work them up into higher donations over time. Recommendations

25Recommendations Prospect ResearchAs of now there seems to be very few procedures in place for prospect research. This is easily implemented as there are numerous online resources as well as local organizations such as The Community Foundation and the Foundation Center. Having access to The Community Foundation and the Foundation Centers databases can easily assist in conducing proper research to found your organizations projects and offer information to get started on cultivating a relationship with a new foundation. The Foundation Center also offers free training in the areas of grant writing and foundation relationships that should be fully taken advantage of. Individual and Major DonorsMost current donors to The Wrens Nest are giving very little compared to what they could or have given to other organizations. Just no one has asked them properly. Knowing who your donors are is crucial to successful stewardship and extensive research needs to be done before asking them for a donation. Armed with this information the organization can make an informed decision as to how to ask the donor and how much to ask for. It prevents the donor feeling uncomfortable and the organization from being shortchanged. Another important aspect as to properly cultivating major donors is to spend time getting to know them. Speak to them face to face at events or lunches several time with no mention of money before you event begin planning an ask for a major gift. Let your donors feel comfortable and connected to the organization and then ask for their help. Corporations and FoundationsOver the past few years The Wrens Nest has been receiving grants from the same foundations and corporations. It is good to have a long-standing relationship with a company or foundation, but getting dependant on one or two is dangerous. A diverse selection of grants from different organizations for differing areas of interest is the best way to ensure that your organization is not left empty handed if you did not receive the grant you were hoping for. Databases such as the Foundation Centers help you find and research new grant prospects that align with your mission and goals with those of the potential foundation. The Community Foundation is not only a huge resource for grants and funding, but also offers information on trends and statistics in corporate and foundation giving so that you can be better prepared in asking for funding. Grant WritingGrant writing can be difficult, but with the proper preparation it can be effectively used to your advantage. Before applying to any particular grant first come up with a basic template consisting of a letter of interest, a statement of need, goals and objectives, organization background etc. Have a template for each area of interest that you intend to apply to. Use specific information and documentation on past projects and successes as well as reviews and personal accounts from people who benefited from the programs you offer. Being specific helps you to make a connection with the foundation as well as helps you to be clear about your past achievements and future endeavors.

26Recommendations Grant WritingGrant writing can be difficult, but with the proper preparation it can be effectively used to your advantage. Before applying to any particular grant first come up with a basic template consisting of a letter of interest, a statement of need, goals and objectives, organization background etc. Have a template for each area of interest that you intend to apply to. Use specific information and documentation on past projects and successes as well as reviews and personal accounts from people who benefited from the programs you offer. Being specific helps you to make a connection with the foundation as well as helps you to be clear about your past achievements and future endeavors. General Fundraising EffortsVery little money is coming from general fundraising efforts such as membership, mailings and events because none of these measures are currently in place. Most donor cultivation is done through mail solicitation and events to get potential donors familiar with the organization and interested in the services they provide. Very few events are held at The Wrens Nest and when they are very little effort is put into generating interest in becoming an annual donor to support the organization. When someone is actively engaged in enjoying what your organization has to offer is the best time to approach them about making a contribution to what you do and the service you provide. Even if they decide not to do it then, you put the idea in their head, which may come to fruition later. It is for this reason that online soliciting techniques for donations should be a supplementary to personal interaction. The Wrens Nest currently relies heavily on website traffic to generate donations, but most people using the website are just there for information and have never actually be to the museum or participated in their activities. For this reason they are very unlikely to make a donation at that time and they may never actually go to the museum much less come back to the website. The Wrens Nest needs to take a more active role in engaging possible donors. They have provided the tools to donate, but they need to start soliciting why donating to the organization is a positive thing that should be considered.

Board InvolvementAt this time it is very unclear the amount of involvement that the Board of Directors take in the operations of the organization, including its fundraising efforts. The Board of Directors is the leader and face of the organization when it comes to major fundraising. They should take leadership in financially supporting the organization they take control of and should have mandatory gift and fundraising requirements for every year that they serve. Bylaws need to be adapted outlining these requirements. Board members should also take an active role in cultivating and asking major donors for gifts. Breaking this task up amongst board members and upper management allows the organization to utilize different strengths and approaches to asking for money while also demonstrating an active and supportive Board of Directors. Conclusion There are several areas of improvement that The Wrens Nest could focus on in improving its fundraising prospects and most of them do need to be implemented and started from the ground up. This can be very daunting, but can also offer a fresh start to the organization. At this time the most important areas to focus on for The Wrens Nest are creating updated, clear and engaging fundraising documents about the organization, using those documents and well as letter and email campaigns to establish and new and diverse pool of donors and utilizing available resources to education themselves about proper grant, foundation and corporate prospect research to further their funding efforts. 27Recommendations

28Campaign Materials Enclosed with this fundraising plan are several examples of documents that have been created for The Wrens Nest. These materials demonstrate the kind of documents that should be presented to donors and grant funders to increase fundraising efforts. Enclosed Are: Donor Acquisition PacketNew Donor Appeal Materials New Donor Online Appeal and Thank You Materials Institutional Funding Grant ProposalMajor Donor and Grant Prospect ResearchSpecial Event PresentationMajor Donor Ask Script

In summary there is plenty of potential for the Wrens Nest to improve their fundraising prospects and the steps that The Wrens Nest needs to take are clear. The most important aspect to take away from this proposal is that organization needs to formally establish clear idea of who they are and what they want to accomplish. Knowing the answers to those questions will help guide the organization in making strong goals and objectives, mission and strategic plan. Knowing the mission, goals and how the organization plans to get there is the hardest obstacle that The Wrens Nest has to overcome, but in doing that several other things will fall into place. Secondly The Wrens Nest needs to draft an operating budget and consistently review and alter that budget to avoid any further deficits. Issues of overspending will not solely be solved by the income of more money. Sound financial and accounting practices should be enacted now to establish a foundation so that revenue can be invested properly when it does increase. Fundraising focuses should be on communicating the organizations newly established values to appeal to donors. Letters, emails and events should target potential donors and solicited them on their interests in the organizations and its programs. Fundraising documents should be updated and revised to assist with donor solicitation.Proper prospect research for major donors and foundations should be conducted through established databases such as the Foundations Centers to find a diverse selection of well-qualified grants. Local recourses should also be taken advantage of. Information on funding trends, workshops and educational activities supplied by the Foundation Center and The Community Foundation should be constantly utilized so that The Wrens Nest can be armed with the best knowledge to purse funding throughout the future of the organization. Focusing efforts on fundraising at this crucial moment for the organization could be indispensible. Fundraising is an investment that must be taken. Donors form the lifeblood of a non-profit, but they must be engaged and befriended. It takes constant time, money and effort, but a base of loyal donors and supports is crucial to the growth and success of a healthy organization. In Conclusion 29

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