Sustainability Strategies for Sustainability Strategies for Non-Profit Organizations: Non-Profit Organizations: Growth and Development Growth and Development

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Sponsored By:Michigan Department of Community Health,

Mental Health, and Substance Abuse Administration, Bureau of Substance Abuse

and Addiction Services

A Briefing Intervention OnSustainability Strategies for Non-Profit

Organizations:Development and Growth Support Initiative

11th Annual SUD ConferenceLarry P. Scott, AdministratorMichigan Dept. of Community Health, Mental Health, and Substance Abuse Administration Bureau of Substance Abuse and Addiction Services

Facilitator: Freddie John Martin, Ph.D.Senior Training and TA ConsultantSustainability Strategies for Non-Profit Organizations: Development and Growth Support InitiativeSynergy Enterprises, Inc.Silver Spring, Maryland

Sustainability Strategies for Sustainability Strategies for Non-Profit Organizations: Non-Profit Organizations: Growth and Development Growth and Development

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1) PROVIDE YOU WITH PIVOTAL INFORMATION ON SUSTAINABILITY STRATEGIES THAT YOU CAN USE NOW TO BEGIN YOUR THINKING ABOUT A REVENUE MIX THAT GENERATES UNRESTRICTED FUNDING AND REDUCES DEPENDABILITY ON ANY ONE TYPE OF FUNDING;

2) MOTIVATE YOU TO DEVELOP OR REVISE, AND IMPLEMENT A 2-YEAR INCOME OR REVENUE DIVERSIFICATION PLAN FOR YOUR VESTED ORGANIZATION; AND

3) STRESS THE IMPORTANCE OF ASSET MAPPING FOR REACHING OUT STRATEGICALLY AND EXPANDING YOUR PARTNERSHIPS WITH FOUNDATIONS, CORPORATIONS, GOVERNMENTS AND INDIVIDUALS.

PURPOSE AND APPROACHPURPOSE AND APPROACHTHE PURPOSE OF THE SUSTAINABILITY BRIEFING IS THE PURPOSE OF THE SUSTAINABILITY BRIEFING IS

THREE-FOLD:THREE-FOLD:

THE BRIEFING SESSION WILL UTILIZE A VARIETY OF APPROACHES TO INFORM, GUIDE AND ADVISE NON-PROFIT PARTICIPANTS. THE BRIEFING WILL BE VERY INTERACTIVE AND DISCUSSION-BASED. EXERCISES ON IMPLEMENTING AND MEASURING INDIVIDUAL DIVERSIFICATION REVENUE PLANS WILL BE USED TO EXPAND REVENUE AND GENERATE NEW PARTNERSHIPS.IT WILL INCLUDE A LECTURE AND INQUIRY APPROACH TO BRIEF AND MOTIVATE ACTIVE PARTICIPATION.

THE BRIEFING SESSION WILL UTILIZE A VARIETY OF APPROACHES TO INFORM, GUIDE AND ADVISE NON-PROFIT PARTICIPANTS. THE BRIEFING WILL BE VERY INTERACTIVE AND DISCUSSION-BASED. EXERCISES ON IMPLEMENTING AND MEASURING INDIVIDUAL DIVERSIFICATION REVENUE PLANS WILL BE USED TO EXPAND REVENUE AND GENERATE NEW PARTNERSHIPS.IT WILL INCLUDE A LECTURE AND INQUIRY APPROACH TO BRIEF AND MOTIVATE ACTIVE PARTICIPATION.

PURPOSE AND APPROACHPURPOSE AND APPROACHTHE APPROACH OF THE SUSTAINABILITY BRIEFING IS THE APPROACH OF THE SUSTAINABILITY BRIEFING IS

THREE-FOLD:THREE-FOLD:

1. Analyze Your Organization’s Historical Funding Mix;2. Understand the Importance of Income Diversification to

Long-Term Financial Sustainability;3. Be Able to List the Traditional Types of Revenue Strategies

and the Types and Kinds of Cash and Non-Cash Resources Available to Your Non-Profit Organization;

4. Understand Specific Information on Government, Foundation and Corporate Sources of Funding for Substance Abuse Programs and Services;

5. Understand the Relative Size and Difference between sources of Philanthropic Dollars in the United States;

6. Identify Five (5) New Funding Sources and Tools for ongoing Funding Support of Your Substance Abuse Programs and Services;

7. Learn the Importance of Conducting An Asset Mapping Campaign to Expand Your Revenue Base;

8. Use the Information Provided to Develop a Draft Copy of a 2-Year Income Diversification Strategy for Your Organization.

LEARNING OBJECTIVESLEARNING OBJECTIVES

TYPES OF FUNDING AVAILABLETYPES OF FUNDING AVAILABLETO NON-PROFIT ORGANIZATIONSTO NON-PROFIT ORGANIZATIONS

FUNDING MIX EXERCISE:FUNDING MIX EXERCISE:SOURCES OF REVENUE CHECKLIST Page 1SOURCES OF REVENUE CHECKLIST Page 1

Source of Revenue ChecklistCheck off those type of revenues that your organization has or will have fiscal year. Check here ifHas you organization received any of these type of funding in the prior two years? received in

This Fiscal Year prior twoSource of Revenue Estimated $ Percent of Total years

Grants Federal DirectGrants Federal IndectGrants StateGrants Local Government

Sub-total - Grants Private FoundationsGrants Community FoundationsGrants Corparate FoundationsGrants Family FoundationsGrants Religious Groups

Sub-total - Earned Income Contracts/Fee for ServicesEarned Income Rental IncomeEarned Income Business VentureEarned Income Endowment Interest Income

FUNDING MIX EXERCISE:FUNDING MIX EXERCISE:SOURCES OF REVENUE CHECKLIST Page 2SOURCES OF REVENUE CHECKLIST Page 2

Earned Income Rental IncomeEarned Income Business VentureEarned Income Endowment Interest IncomeEarned Income Merchandise Product Sales

Sub-total - Fundrasing Special EventsFundrasing Annual Fund AppealFundrasing Pledge Program

Sub-total - Contributions Endowment CampaignContributions Capital CampaignContributions Corporate MerchandiseContributions Donations from IndividualsContributions Gifts from Board MembersContributions Major Gifts from Individuals

Sub-total - Loans Donated Goods

Sub-totalDonations Donated GoodsDonations Donated ServicesDonations Volunteers

FUNDING MIX EXERCISE:FUNDING MIX EXERCISE:SOURCES OF REVENUE CHECKLIST SOURCES OF REVENUE CHECKLIST

Page 3Page 3Contributions Endowment CampaignContributions Capital CampaignContributions Corporate MerchandiseContributions Donations from IndividualsContributions Gifts from Board MembersContributions Major Gifts from Individuals

Sub-total - Loans Donated Goods

Sub-totalDonations Donated GoodsDonations Donated ServicesDonations Volunteers

Sub-total - Other (List)Other (List)Other (List)

Sub-total - TOTAL -$

Action Planning GridAction Planning Grid

GROUP ACTIVITY: Action Planning Grid Priorities Action Steps Stakeholders/

Resources Timeline Outcomes

[THE DATA LISTED ON THE FACT SHEETS ARE COMPILEDFROM 2006-2007 REPORTS FROM THE FOUNDATION CENTER,

HIGHLIGHTS OF THE FOUNDATION YEARBOOK, 2007]

YOUR SUSTAINABILITY MARKETS:1. GOVERNMENT—FEDERAL ONLY

THE FEDERAL GOVERNMENT IS THE LARGEST SINGLE FUNDER OF NON-PROFIT PROGRAMS AND SERVICES;

FEDERAL GRANTS AWARDED ANNUALLY ARE MORE THAN ALL GRANTS TO NON-PROFITS BY FOUNDATIONS, CORPORATIONS, PLUS ALL CONTRIBUTIONS MADE BY

INDIVIDUALS TO ALL NON-PROFITS;

ABOUT 60 % OF ALL NON-PROFIT

FUNDING COME FROM THE FEDERAL GOVERNMENT (IS THAT SURPRISING?);

IN TERMS OF BILLIONS, HOW MANY BILLION DID THE FEDS GIVE TO NON-PROFITS IN 2007?

THE FACT SHEETS OF FUNDINGTHE FACT SHEETS OF FUNDING

2. INDIVIDUAL DONORSINDIVIDUALS ARE THE SECOND

LARGEST GIVERS TO NON-PROFIT ORGANIZATIONS;

INDIVIDUAL DONATIONS MADE UP ABOUT 30 % OF THE MONEY NON-PROFITS RECEIVED;

75-85% OF PRIVATE SECTOR GIVING COMES FROM INDIVIDUALS—MOST OF IT TO CHURCHES;

$22 BILLION WERE RECEIVED BY NON-PROFITS FROM BEQUESTS—MONIES WILLED TO A NONPROFIT ARE DESIGNATED WHILE INDIVIDUALS ARE ALIVE.

33% OF ALL NON-GOVERNMENTAL FUNDS WERE GIVEN AS GIFTS TO RELIGIOUS ORGANIZATIONS—96 BILLION DOLLARS MOSTLY BY INDIVIDUALS;

80% OF INDIVIDUALS ITEMIZE THEIR CHARTIABLE GIFTS VIA TAX DEDUCTIONS FOR FEDERAL INCOME TAX

THE FACT SHEETS OF FUNDINGTHE FACT SHEETS OF FUNDING

DONATIONS FROM FOUNDATIONS, CORPORATIONS AND BEQUESTS MAKE UP 10 % OF NON-PROFIT FUNDING;

THERE ARE APPROXIMATELY 72, 477 FOUNDATIONS AND THEY GAVE NEARLY 40 BILLION OR ROUGHLY 12 % OF THE TOTAL NON-GOVERNMENT FUNDING TO NON-PROFITS;

BY LAW FOUNDATIONS MUST GIVE

AWAY 5% OF THEIRENDOWNMENTS. EACH YEAR. THIS MEANS A FOUNDATION’S ASSETS MUSTBE AT LEAST 5 % IN INTERESTOR THE FOUNDATION WILL

HAVETO DIP INTO ITS ENDOWMENTTO MEET THIS “IRS RULE”;

FOUNDATIONSFOUNDATIONS

FOUNDATION GIVING BY CATEGORY WAS $16.2 BILLION (42%) BY FAMILY, $11.3 BILLION (29%) BY INDEPENDENT, $4.1 BILLION (11%) BY CORPORATE FOUNDATIONS, $3.9 BILLION (10%) BY OPERATING AND $3.6 BILLION (9 %) BY COMMUNITY FOUNDATIONS;

MOST NON-PROFITS APPLY ONLY TO INDEPENDENT FOUNDATIONS; WHY? BECAUSE THEY ARE EASIER TO IDENTIFY;

THE VAST MAJORITY OF FOUNDATIONS HAVE NO STAFF; STAFF FOUNDATIONS TEND TO BE MORE RESPONSIVE TO GRANT

PROPOSALS FROM NON-PROFITS; 1.5 MILLION NON-PROFITS ARE

ESTIMATED IN THE UNITED STATES AND ABOUT 72,000 ARE GRANTMAKING FOUNDATIONS;

FOUNDATIONS TEND TO BE CLUSTERED IN THE EAST AND WEST COASTS OF THE UNITED STATES;

NEW YORK 16% CALIFORNIA 12% NEW JERSEY 9% TEXAS 5% WASHINGTON 5%

FOUNDATIONSFOUNDATIONS

1. AVENTIS PHARMACEUTICAL HEALTH CARE FOUNDATION (NJ)

2. THE BANK OF AMERICA CHARITABLE FOUNDATION, INC. (NJ)

3. WAL-MART FOUNDATION (AR)4. GE FOUNDATION (CT)5. THE J.P. MORGAN CHASE

FOUNDATION (NY)

6. CITI FOUNDATION (NY)7. THE WACHOVIA

FOUNDATION, INC. (NC)8. WELLS FARGO FOUNDATION

(CA)9. EXXON MOBIL FOUNDATION

(TX)10. VERIZON FOUNDATION (NJ)

CORPORATIONSCORPORATIONS

FEES FOR SERVICE RELATED BUSINESS INCOME PRODUCT SALES

(I.E., SALE OF COOKIES, CHICKENS AND TICKETS TO EVENTS)

DONATIONS FROM BOARD MEMBERS REAL ESTATE, RENTAL PROPERTY AND HOLDINGS PUBLICATIONS TRAINING AND TECHNICAL ASSISTANCE FUNDRAISING ACTIVITIES

(I.E., ANNUAL APPEALS, ANNUAL, SPECIAL EVENTS & DINNERS)

TELEMARKETING CAMPAIGNS

EARNED INCOMEEARNED INCOME

VEHICLES, SPACE AND DINNERS COMPUTERS, EQUIPMENT & OFFICE

FURNISHINGS PROPERTY, LAND, ART AND INSURANCE

POLICIES LABOR AND SERVICES MEDICATION/HIV TEST KITS INCENTIVES/GIFT CARDS AND MONEY PRINTING AND PUBLICITY FOOD AND BEVERAGES

DONATED GOODS AND DONATED GOODS AND SERVICESSERVICES

SILENT AUCTIONS DINNERS GOLF TOURNAMENTS WALK-A-THONS RAFFLES GARAGE AND YARD SALES FESTIVALS/BOOTHS WEB/E-MAIL CAMPAIGNS MAIL CAMPAIGNS TELEMARKETING

CAMPAIGNS

BOARD SUPPORTIVE SPECIAL BOARD SUPPORTIVE SPECIAL EVENTS:EVENTS:

A POTPOURI OF FUNDRAISING ACTIVITIESA POTPOURI OF FUNDRAISING ACTIVITIES

Administrator: Larry P. Scott, Michigan Dept. of Community Health, Mental Health, Substance Abuse, Bureau of Substance Abuse And Addiction Services AndThe Knopf Company, Ashley Knopf

Facilitator: Freddie John Martin, Ph.D.Senior Training and TA Consultant,Non-Profit Capacity Building Topic: Sustainability Strategies: Development and Growth Support Initiative For Use Also By the Michigan Institute for Prevention and Treatment Education

Sustainability Strategies for Sustainability Strategies for Non-Profit Organizations: Non-Profit Organizations: Development and Growth Development and Growth

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