Planning for Successful FundraisingKentucky Hospital Association

May 11, 2018

Lynnie Meyer RN EdD CFRESenior Vice President &

Chief Development OfficerNorton Healthcare

Philanthropy In the USA

2016 contributions: $390.05 billion by source of contributions(in billions of dollars – all figures are rounded)

Giving USA: The Annual Report on Philanthropy for the Year 2016(2017). Chicago Giving USA Foundation.

2016 contributions: $390.05 billion by type of recipient organizations(in billions of dollars – all figures are rounded)

Giving USA: The Annual Report on Philanthropy for the Year 2016(2017). Chicago Giving USA Foundation.

Number of volunteers in millions of people, 2005-2015

Giving USA: The Annual Report on Philanthropy for the Year 2016(2017). Chicago Giving USA Foundation.

Philanthropic Fundraising Three Primary Characteristics

• Mission Based - Grounded in the values and purposes of the organization it serves.

• Volunteer Centered - Balance between volunteer and professional staff.

• Donor Focused – understanding the donors point of view

The Tradition of Your Organization

• Your role to draw constituents into a mutually beneficial relationship with your organization.

• Your mission and programs are the story that you should be telling.

• How well you tell the story makes a difference.• You must understand the good and not so good

story of your organizations history. • Learn from your history to create a more

successful future.

Ninety Day Plan Building Organizational Infrastructure

• Focus on mission • Engaging an active board of directors • Seeking to lead the way• Explore new ideas and programs • Set new and high standards• Improve quality of services • Learn and change for the better• Be open to public scrutiny and accountability • Exercise stewardship of the organizations resources• Focus, transparency, and discipline

Ethical Standards Set the Tone

• Every statement, action, and attitude must build trust, confidence, and good will in the community.

• The needs and interest of the donor and the interest of the organization must be congruent.

Planning for Successful Fundraising

Planning:

• Strategic Planning - Sets the direction for the organization.

• Marketing Planning - How to communicate the message.

• Development Planning - Defines the organizations case for support and outlines the what, when and how for fundraising.

Development - Case for Support

• Communicate organizations mission, purpose, and goals. • Explain current programs and give examples of positive results. • Describe how programs enrich and benefit the community.• Inspire and motivate donors, volunteers and the community to

support the organization. • Clearly stated fundraising goals for a specific program or project. • An explanation of how funds are used.• An explanation of how the organization will change or improve

lives. • A brief history of the organization.

Steps Along the Way....

• Constituency Based - Donors needs and interest match programs and services. Focus is on motivating donors to give to the organization.

• Development Goals - Annual Fund Goal and Capital or Endowment Goals.

• Prospect Research - Cumulative and ongoing• Cultivation Strategies – Matching of organizational and

donor values. • Solicitation Strategies - Who - How - What and When?• Gift Management - tracking and acknowledge. • Development calendar - Activities, staff, start and end date.

The Integrated Development Plan Purpose:

Integrated development approach - Annual Giving, Major Gift development, Capital, Special Events and Planned Giving.

Annual Giving - Works to promote a long term relationship -communicates its message to the community at large.

Major Giving - Concentration on those whose interest and involvement have grown.

Planned Giving - Concentration on those few donors who have an interest in helping the organization continue to exist in the future.

Annual Fund

• Is ongoing; Year Round • Targets a large, widespread population • Brings in smaller donations (but more of them) • Provides the primary operational support for the organization • Contributions can be unrestricted or restricted • Renew donors annually• Cultivate donors to give at a higher level• Solicit new donors to broaden the base of support • Help educate constituents about our organizations work• Help identify and develop major gift prospects• Build donor loyalty

Capital • Facility construction • Renovation or expansion of an existing facility • Acquisition of special equipment • Strengthening of endowments and capital assets• Coordination with Finance and Hospital Leadership

Planned Giving

• Planned giving is the integration of sound personal, financial, and estate planning concepts with the donor’s plans for lifetime giving.

• Values based legacy planning. • Cash, Assets, Bequest, Annuities, Trust, Life Estate contracts,

Life Insurance Beneficiary, or Income Funds.• Typically provides tax benefits or income for the donor or

donors family while at the same time enhancing the donor’s commitment to the organization.

Why Major Donors Give

• Belief in the cause – because of their needs• Joy of giving • Opportunity to meet specific needs• Because they are asked • Because of the relationship between the donor and

the organization • To make a difference; to change the world

Major Gift Relationship Building

• Identify the prospects - current donors, lapsed donors, foundations, corporations, civic groups, board, staff

• Profile the donors and check in house files - Web • Determine the prospects potential for giving• Board and/or leadership team reviews• Personal contact -- begin the cultivation phase -

calls, personal letters, invitations, newsletters

All gifts are not created equal

• Staff Identified Prospect: Conversion 5.7 monthsAverage gift $49,000

• Board Identified: Conversion 6.9 monthsAverage gift $242,000

• Physician referred: Conversion 2.9 monthsAverage gift $455,000

Role of The Executive Director

• Chief image maker and fundraiser - will accompany a board member/volunteer on a visit or make visits alone.

• Keep fundraising activities in the forefront by communicating with the board, volunteers, donors, and the press.

• Provide strategic philanthropic leadership supporting system priorities in the development of the Case for Support.

• Executive leader of philanthropic operations - budget and programs that keeps the board engaged while at the same time driving strategic efforts of the organization in the community.

Role of The Board

• Proactive advocate for the organization’s work • Define and support short and long range plans to achieve the

mission • Share time, talent, and influence - especially in major gift

fundraising• Contribute financially to the organization• Guarantee faithfulness to the mission • Appoint, support and evaluate the CEO • Ensure financial health and fiscal integrity • Represent the organization in the community and

community in the organization

Looking Back Philanthropy in our Health System

Sustained resource investment in fundraising programs and infrastructure, in strategic communication, in engagement initiatives, and in the professionals who drive them

• Norton Healthcare provided significant investment to develop the Foundations leadership and infrastructure for 15 years.

• It has continued to invest in the development program of the two Foundations and has seen sustainable growth.

• Investment will need to continue to move the philanthropic message forward more aggressively and meet anticipated future philanthropic aspirations.

• Investment must also encompass the system’s marketing, and public relations areas and focus on continued integration in development efforts.

• The Norton Healthcare and Children’s Hospital Foundations have raised an average of $18.9 million over the period FY13-FY17.

• Private gift support has been sustained and consistent over that same period with a high of $20 million in FY14 from a low of $17.7 million in FY13.

• The number of gifts has increased at every gift level from gifts below $1,000 up through support at just below $500,000.

• For Major Gift levels ($25,000+) the most significant growth occurred at levels covering private support from $25,000-$99,999.

• The Cost-Per-Dollar-Raised for the combined development initiatives is $0.20, which is on the low expense side for mid-sized health care systems.

ESSENTIAL ELEMENTS FOR FUNDRAISING SUCCESS

FINDINGS AND OBSERVATIONS

Internal leadership who can articulate a compelling vision, enable excellence, understand the importance of private support to sustaining excellence and who can build trust and long term relationships with potential donors

– The importance and impact of philanthropy to the current and future capabilities of Norton Healthcare has been positioned over the past decade and, like other not-for-profit health care institutions, requires:

• Continued emphasis internally, lead by key executive, physician and development leadership

• Expanded efforts to educate the understanding among Norton Healthcare’s key stakeholders

– Data indicates that donor relationships are maturing and sustaining, Focus will continue on integrating strategic case, physicians engagement and support from volunteer leadership.