V3 patterson school_fundraising_potential_plan

Patterson School

Fundraising:

a potential plan

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Samuel Legerwood Patterson

“Samuel Patterson (1850-1908)... served as state commissioner of agriculture in the early 1900s. He is noted in the history of N.C. State University facilities as having influenced legislation in the area of agriculture and the life sciences and as having initiated progressive legislation such as pure food laws, tick eradication laws, the appointment of a state veterinarian and entomologist, and efforts to arrest destruction of field and horticultural crops.”

http://www.cals.ncsu.edu/agcomm/magazine/summer05/aghall.htm

Non-profit Life Cycle: http://www.nhnonprofits.org/knowledgecenter/ccat/lifecycle.cfm

This is an exciting time of renewal and rebirth….and recommitment.....

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Type Possible Funder Interest More info How Found

Non-profit, national Slow Money National

Local food and education

http://www.slowmoney.org/national-gathering/program

Knew of them already

US Gov’t Farm to School Grant Program

Funding farm to school lunch programs

http://www.fns.usda.gov/cnd/f2s/f2_grant_program.htm

Googled

US Gov’t The Local Farms, Food, and Jobs Act

The Local Farms, Food, and Jobs Act will improve federal farm bill programs that support local and regional farm and food systems

http://www.ucsusa.org/food_and_agriculture/solutions/strengthen-healthy-farm-policy/local-farms-food-and-jobs-act.html

Googled

Mine the groups that support the Food Bank of Central & Eastern NC!!

Concentrate on donors that won’t interfere or have a conflict of interest with mission

About 100 donors listed

http://www.foodbankcenc.org/site/PageServer?pagename=about_partners

Googled

http://www.foodshuttle.org/ -- look at their list of donors

Concentrate on donors that won’t interfere or have a conflict of interest with mission

Look at their online campaigns. Also run a two-day conference.

Love their work!

Look over donor list for Caldwell County…mine from there! They must list their donors in their annual reports!

http://nccsdataweb.urban.org/PubApps/geoShowOrgs.php?id=C37027&code=C37027&v=n

Food, farm, agriculture, youth and agriculture, agriculture and education = hot and contemporary topic. Lots of interest!! Here are some sample funders in this area.Develop a list of at least 30!!! Then set a plan to attack that list. Who knows whom? Here is a start…

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560160075Blue Ridge Electric Membership Corporation

12 138,429,145 346,816,346 2011

560554202 Caldwell Memorial Hospital Inc 03 94,262,863 48,429,934 2011

561717932 Comserv Inc 03 9,479,966 2,325,472 2011

561338470 Caldwell Hospice and Palliative Care Inc 03 8,283,502 16,440,040 2011

561393284

Employee Welfare Benefit Trust for Bernhardt Furniture Company

09 7,650,502 1,271,784 2011

562076541 Helping Hands Clinic Inc 03 5,061,356 2,740,530 2011

566047501 Coffey Foundation Inc 03 3,727,719 6,931,426 2011

132548997 Presbyterian Lay Committee Inc 03 3,079,231 1,992,164 2011

201090467

Caldwell County Smart Start A Partnership for Young Children

03 2,131,717 21,612 2011

591756933

West Caldwell Health Council Inc West Caldwell Health Council Inc

03 1,988,065 1,059,572 2011

561459346 The Jonas Foundation 03 1,402,937 7,799,397 2011

237212721Foundation of the Caldwell Community College and Technical

03 1,357,142 9,605,769 2011

561760354Habitat for Humanity International Inc Caldwell County

03 1,041,246 2,663,013 2011

561171000 Koinonia Inc 03 976,677 3,515,929 2010

560933132 Baton Water Corporation Inc 12 959,277 1,636,294 2011

581935514Caldwell Memorial Hospital Foundation Inc

03 957,580 5,703,100 2011

561570471 Patterson School Inc 03 885,706 80,023 2011

561339800 South Caldwell Christian Ministries 03 851,488 432,489 2011

562208650 Caldwell Opportunties Inc 03 806,174 581,963 2012

http://www.foodshuttle.org/

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562139696 Lamb Foundation of North Carolina Inc 03 760,809 361,009 2011

561271172 North Catawba Fire-Rescue Department Inc 03 676,648 1,950,053 2011

272336081Childrens Advocacy Center of Caldwell County Inc Robins Nest

03 672,931 521,562 2011

566469396 Caldwell Hospice Foundation 03 584,633 3,139,302 2011

561393238 Hudson Volunteer Fire Department Inc 04 534,757 1,005,390 2011

566050210 Bethel Colony of Mercy Inc 03 533,958 2,066,087 2011

561386261 Dulatown Outreach Center Inc 03 513,448 609,060 2010

561244166Shelter Home of Caldwell County Incorporated

03 506,093 437,791 2011

561824646 Stevens Family Foundation Inc 03 437,102 2,514,486 2011

566067038 Caldwell County United Fund 03 433,859 846,591 2011

562095530 Heritage Christian School 03 421,897 138,452 2012

561659608 Education Foundation Inc of Caldwell County 03 418,535 3,642,928 2012

561351731 Grace Chapel Volunteer Fire 04 412,766 2,789,993 2011

581487839 Valmead Volunteer Fire Department Inc 03 337,781 467,453 2011

510136339 Sawmills Volunteer Fire Department Inc 03 306,047 945,310 2011

560686188The Gamewell Volunteer Fire Department Inc

04 291,795 1,464,080 2011

560814231 Caldwell County Farm Bureau 05 279,101 611,817 2011

561793740Blue Ridge Electric Members Foundation Inc

03 262,580 42,535 2011

581535259 Caldwell Halfway House Inc 03 260,547 608,746 2011

581613260 Broyhill Memorial Park Inc 13 256,016 1,399,975 2011

900056895 Little River Fire Dept Inc 03 225,240 378,630 2011

593830615 Faith in America Inc 03 224,286 12,696 2011

270877018 Caldwell 2020 Inc 03 221,026 90,643 2011

561192344 Caldwell Arts Council Inc 03 217,125 330,430 2011

237031955 Caldwell County Yokefellow Inc 03 201,644 659,338 2011

262911206 Coach Approach Ministries 03 199,773 15,209 2011

561638294 Lenoir Rescue Squad Inc 03 195,270 314,250 2009

Angel investors in North Carolina.... and Giving Circles –start to cultivate them toward investment!!

Sampling of Giving Circles in North Carolina

* A LOT "A Legacy of Tradition" (Raleigh-Durham-Chapel Hill, NC)* Bertie-Hertford Women’s Fund (Bertie and Hertford Counties, NC)*Currituck-Dare Women's Fund (Currituck and Dare Counties, NC)* Fondue Fund (Winston-Salem, Greensboro and Highpoint NC - Piedmont Triad)* Heritage Quilters Circle (Warrenton, NC)* New Generation of African American Philanthropists Fund (Charlotte, NC)* The Art of Giving, a collective of Triangle women* The Beehive Collective (Raleigh, NC)* The Cary Women's Giving Network (hosted by the North Carolina Community Foundation)* The Wake County Women’s Giving Network (Wake County, NC)* The Women Givers of Nash-Rocky Mount* The Women's Impact Network, which serves New Hanover County, hosted by the North Carolina Community Foundation)Way Out (Wake County, NC)* Women Givers of Northeast North Carolina (Camden, Gates, Pasquotank and Perquimans Counties, NC)* Women for Women (Western NC), hosted by The Community Foundation of Western North Carolina, serving the counties of: Avery, Buncombe, Burke, Cherokee, Clay, Graham, Haywood, Henderson, Jackson, Macon, Madison, McDowell, Mitchell, Polk, Rutherford, Swain, Transylvania and Yancey.* Women's Fund of Winston-Salem (Winston-Salem, NC)* Womenade Chapters in:* Apex, North Carolina (Womenade "Sisters of Servanthood" or SOS) Faith Based: Winston Salem and Chapel Hill

Graph of Cultivation Cycle (courtesy of Larry Haskell)

Figure out whohas the money &

Is Patterson a good fit? Would a mutuallybeneficial relationshipcome out of this? Is PSworth their time and they

Worth PS’s?

Get to know each otherConferences; personal references;

Colleagues; peers;;PR; articles Speaking engagements;

Social activities (Do they want what PS offers around?

Do they want tohave PS on their list? Can

they afford not to?) {Yes, this iseven possible

with gov't agencies}

Make them an offer they can't refuse:proposals, grants, direct asks (meet

& just ask for the money), get“higher ups” to ask on your behalf

Keep involved with them: invite toOrg events,

hear others speak about your org,send personal notes

of thanks, keep cultivating -[Yes, this is even possible

with gov't agencies]

Now that you have a list of thirty possible high net worth donors, foundations, agencies, etc. How do you get people to give??? You ACTIVATE & Adhere to the Fundraising Life Cycle!!!

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All Board members should commit to doing a few of these over the next year….GO TO THE PLACES WHERE THE PEOPLE

ARE THAT YOU WANT TO GIVE YOU MONEY & make friends for Patterson!

Nonprofit & Gov Council on

Foundations, http://www.cof.org

Conferences Competitions Networking events

Business Conferences Competitions Networking events Social events Alumni events

HAVE SEVERAL FRIENDRAISING EVENTS!!!

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Friendraising Events– invite from your potential donor list and from among your friends with power, money, and/or influence…

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In order to raise funds, Patterson School needs more friends…. You raise funds by making friends and allies out of potential donors…..and you do it the old-fashioned way—live! Have these events once you have a strategic plan and your list of donors. This gives you what to talk about and whom to talk about it with. For right now, keep the events small and intimate….you can do a larger re-launch event once larger donors have committed….

Here are some events Board members should consider sponsoring over the next year in order to fundraise. Plant a person among each of these who is already an ally and willing to give. Have that person talk about why he/she or their org or agency is giving.•Dinner party for potential friends with power, money, or influence. Board member does a presentation on Patterson and why it is important. Asks for assistance and donations. The list of invitees is vetted by the whole Board.•Afternoon Tea and Tour of Patterson for potential friends with power, money, or influence. Invite potential large donors (individuals, foundations, members of government agencies) and get them enthusiastic about your mission. Follow-up with proposals. Get the food and tea donated.•Cocktail Party or Party for Patterson. Board member does a presentation on Patterson and why it is important. Asks for assistance and donations. The list of invitees is vetted by the whole Board.

Set up a 5 – 6 member Fundraising Committee, dedicated to a weekly pro bono commitment for the next year, 2013 – 2014, to lead the whole group fundraising and strategic planning effort (This would normally be done by an executive director + development director. In lieu of this, a committee splits up the job).

This committee:•Creates a database of at least 30 donors with input from Board. •Each of 5 official Board members on the committee identifies 6 donors and develops an approach (see approaches slides) and to lead the follow-through on the approach to 6•Leads and stewards other board members to assist in donor cultivations•Writes proposals•Leads other board members on asks and events•Coordinates friendraising events with larger Board

I am offering to be a “sixth” member and to use my expertise in:strategic planning, fundraising, the fundraising cycle, proposal review and writing, implementing fundraising events, media communications and PR, and coaching board members and executive directors on fundraising.

Goal : raise the 3 years for the land/farm project AND CREATE a bank of five high net proposals to shop to different funders & Fund a person dedicated to fundraising (see next slides)

Everyone’s involvement: The fundraising committee and everyone else would then need to commit to going on the asks...I am happy to coach people on how to cultivate and make the ask.

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http://www.cof.org/

Here is a suggestion in terms of people and structure over the next three years:

Year 1: Director of Land & Farm Entrepreneurship now!!! = essential for businesses, education, and attraction to Patterson (contracted position)

•Land management including monitoring of soil health--must be given specific list of what this includes•Development of shitake business and sales•A permaculture design for the full acreage complete by Edward together with key stakeholders•Enactment of the permaculture design to be implemented in stages once design is complete and fundraising possible--not possible to estimate cost of implementation until design is finished. Some key stakeholders need to take a permaculture design course...can be with We Are All Farmers or the teachers of their choice. This will include aspects of beautification, forest management, etc..--but should not be done ad hoc.•Creation with proposal writers/interim development people of proposals for additional farm/land for-profit enterprises that align with mission•Assessment and management of set-up of additional farm/land for-profit enterprises that align with mission•208 hours of education offered per year (4 hours a week) on regenerative agriculture•Management of farm interns dedicated to Patterson land revitalization•Implement: Concrete 5 year plan for MiG plan for soil health with possible renewal; Sheep plan to eliminate lawn

Year 2: Director of Outreach: (contracted position)•fundraising and fund development for both educational and farm/land projects (proposal writing, meeting with donors along with the board)•oversight of educational programs (maintenance, outreach, liaisoning)•hospitality programming and rentals (oversight of conferences, etc.)•online presence/creation/public relations--must have web skills.

>>>>To get someone worth their salt, this will not be cheap to hire, 60k locally, if not more. They have to raise their next year's pay, so they will be active!! Big foundations want to see you have fundraising plan and a person in place to implement it...so there money grows potential rather than just keeps stuff afloat.

This person will probably need one assistant, which can be a for-hire service like this: http://bit.ly/Zva2Xp which means you don't have to hire anyone to be on site. This person is contracted to assist.

These two key people would be answerable to the Board of Directors....and would work in consort on planning and as a team rather than one having oversight of the other.

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Once the land design is complete and you have decided on some activities you want to see happen for sure….

Go on a two-day Board Retreat. This can even be done at someone’s home…

Get a non-profit org like the NC Center for Non-profits to run a Board retreat for you… develop a five-year strategic plan and budget. (see http://www.ncnonprofits.org/calendar)

At the Board retreat, develop your five-year strategic plan based on the land development plan designed together with the Director of Land & Farm Entrepreneurship, develop an estimated budget for each of these years. That is your fundraising target for each year. This is a living document….and will change, but you need to get in down so you have something to talk to donors about and you have an amount of money to ask for.

Decide if there is a donation level needed also from Board members. Very usual for a Board to also either have a donation amount they must give or that they must steward (they can ask other people to give or go on asks to big foundations and steward that way). Write new Board member contracts and term limits to include stewardship.

Year 3 or beyond: Director of Business Development, Communications & Marketing•market services, offerings, and products developed by the Director of Land & Farm Entrepreneurship and the Director of Outreach•seek out new potential business partnerships for Patterson that align with the mission•take over many of the communications and marketing from the Director of Outreach as that role expands on site programming.

This person would split time between the two components: farm/land and education/hospitality (which = conferences, events, etc.).

All of these people are answerable to the Board....this third person would work under the other two directors.

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http://bit.ly/Zva2Xp

Tactic Brief Description Rationale Capacity NeededSponsored Funder Roundtables

Current large funders host a roundtable, talking about why they support your organization and then they invite other foundations, corporations, agencies, etc. to attend. The large funder plans, invites, and hosts this at no cost to the org.

Funders look good in front of their peers, a whole new set of potential donors is exposed to the org, and a whole new set of donors sees competitor/colleagues making funding in this arena a priority. Funding is unrestricted.

Large funders willing to host.

Affinity Groups/Giving Circles

Business people or other interested groups (wealthy individuals) create a “giving circle” focused on your funding area with a minimum yearly pledge to join.

Business people/wealthy individuals want to be surrounded by similar people of the same priorities and worth. Establishes them in a particular group. Funding is unrestricted.

A few business people or wealthy individuals committed to the cause willing to invite others into the group.

Paid Networking Events

Bringing target audiences together to network: NGOS with NGOs, corporate with corporate, grantees with grantees, or mixing it up. Often a restaurant or hotel will donate space in exchange for prix fixe drinks.

Relationships run almost everything. Help your connections get ahead by providing paid instances for them to network. Provides a regular format to highlight your org’s achievements and cultivates new friends for your org. Funding is unrestricted.

List of solid contacts to start and to invite. Regular format. Space donated. High enough cost per event to cover costs, staff time, and to generate some unrestricted income.

Sponsored Gala Events

Bringing target audiences together to network. Often a restaurant or hotel will donate space in exchange for covering the cost of dinner. Highlights achievements. Great to “plant” a large donor willing to write a check in front of other potential donors. Offer something “unusual” that other galas don’t provide. The kind of event people can bring their families or spouses to. If you win over spouses, often you win over the funder.

Funders look good in front of their peers. Help your connections get ahead by providing paid instances for them to network. Can sell “corporate tables” and other sponsored tables – good advertising for corporations. Easier to get celebrities to attend than other types of events.

List of solid contacts to start and to invite. Regular format. Space donated. High enough cost per event to cover costs, staff time, and to generate large unrestricted income.

Match the type of fundraising activity to the desired result. Develop a plan of attack for each funder on your list of 30. Choose how you will create the opportunity to give by these donors!!^^Source: http://www.onphilanthropy.com/site/News2?page=NewsArticle&id=5207

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http://www.ncnonprofits.org/calendar

Tactic Brief Description Rationale Capacity NeededPaid Conferences/Conventions

Bringing target audiences together to network and learn.

Relationships run almost everything. Help your connections get ahead by providing paid instances for them to network. Provides a regular format to highlight your org’s achievements and cultivates new friends for your org. Funding is unrestricted.

List of solid contacts to start and to invite. Regular format. Space donated. High enough cost per event to cover costs, staff time, and to generate some unrestricted income.

Silent Auction The kind of event people can bring their families or spouses to. If you win over spouses, often you win over the funder. Often a restaurant or hotel will donate space in exchange for prix fixe drinks.

Funders look good in front of their peers. Help your connections get ahead by providing paid instances for them to network. Can auction items sponsored by corporate donors – good advertising for participants. Easier to get celebrities to attend than other types of events. Funding is unrestricted.

List of solid contacts to start and to invite. Regular format. Space donated. Items donated. High enough cost per event and silent auction items to cover costs, staff time, and to generate some unrestricted income.

Online giving related to “urgent” campaigns

Best for “single” cause campaigns. Can generate a lot of new “friends” and small amounts of cash ($10,000). Great for advertising “urgent” issues. Use of social networking and targeting of specific audiences.

Best for “single” cause campaigns, for example, “Help send 300 Armenian youth to Youth Bank Leadership Camp this summer!.” Your “$5” donation blah blah blah.

Solid online and social marketing skills. Staff trained in online and social marketing with audience-specific messaging. Need to launch through social networking sites. Need online capacity for accepting funds.

Major Gifts Individual giving makes up most funding for most organizations. Major gift officers have two challenges: the first is identifying major gift prospects (the science of major gift fundraising), the second is asking for a gift (the art of major gift fundraising). ^^

You aren´t asking for yourself, you´re asking for your mission.^^

Strategy for “friendraising” high net worth individuals. This must be strategic, well-planned, and appropriate.^^

Planned Giving Planned Giving refers to several specific gift types, for example: cash, equity, or property. ..

You aren´t asking for yourself, you´re asking for your mission.^^


Capital Campaigns A capital campaign is an organized drive to collect and accumulate substantial funds to finance major needs of an organization such as a building or major repair project.

Funding is restricted to just the target goal of the capital campaign. Can be a way to engage a corporation or high net worth individual to do a signature project (library, building, etc.)

Needs a definitive plan. Fewer funders fund capital campaigns.

More fundraising tactics

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This should be your main focus....

Endowments An amount of given with a stipulation that the funds are invested to earn annual interest rather than spent immediately.

You aren´t asking for yourself, you´re asking for your mission. Can be a way to engage a corporation or high net worth individual to do a signature endowment.


Running an adjacent business to generate income

As more and more nonprofits compete for limited pools of philanthropic and government support, the prospect of an additional source of earned income becomes increasingly appealing.##

Income from a business venture is particularly attractive because it comes without the restrictions commonly attached to grants and major donations. ##

Must understand challenges, costs, and risks of taking the ride. Can take more time and capital than many people realize. Could pull the parent organization and some of its most valuable resources, such as senior management time, away from the core mission. Requires a firm understanding of the economics of the venture, the market it aims to serve, the competition trying to serve that same market, the direct social impacts of the venture, and any indirect costs or tensions it might create for the parent. Develop a business plan for the venture that combines rigorous analysis, creativity, and action-based learning. Conduct a thorough venture planning process. Crucial to stay focused on the ultimate bottom-line, cost-effective mission impact throughout this process.##

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http://www.onphilanthropy.com/site/News2?page=NewsArticle&id=5207

A mission that blends a commitment to food, agriculture, and Christian charity and give a man a fish/teach a man to fish model??

Patterson School: a premier place for food, land, and agricultural stewardship and research for healthy pure food for all.

Practiced through???

* Living & working farm for-profit enterprises: organic farming, organic grassfed livestock, working biodynamic dairy, highland forest management through sustainable practices such draft animal extraction of high worth trees and bird watching* Living & working farm education of children, adolescents, adults, and high needs groups* Nutrition and best practice food and farm research with a focus on NC heritage foods* Conference and learning center: regional center for food, land, and agricultural stewardship—main attraction for other green and food entities to host paid conferences* Research collaboration & site for nutritious food and projects* Eco and natural building and building rehabilitation & learning center* Alternative energy: hydropower, wind power, solar power, etc.* Food and agricultural education for most needy* Food distribution to needy >>>>high funding in NC for this already!!!

#1 RULE FOR GRANT &

PROPOSAL WRITING

(after you have completed the appropriate parts

of the Cultivation Cycle)

ANSWER EVERYTHINGANSWER EVERYTHING

& GIVE THE GRANTORGIVE THE GRANTOR

WHAT THEY WANTWHAT THEY WANT

HOW THEY WANT ITHOW THEY WANT IT

WHEN THEY WANT ITWHEN THEY WANT IT

WHERE THEY WANT ITWHERE THEY WANT IT

#2 RULE FOR GRANT &PROPOSAL WRITING

(after you have completed the appropriate parts of the Cultivation

Cycle)GET THEM TO ASK YOU FOR A GET THEM TO ASK YOU FOR A

PROPOSALPROPOSALBYBY GETTINGGETTING

IN FRONT OF:IN FRONT OF:

FOUNDATION LEADERSBUSINESS LEADERSBUSINESS LEADERS

GOVERNMENT LEADERSGOVERNMENT LEADERS


(after you have completed the appropriate parts of the

Cultivation Cycle)

PROMOTEPROMOTEYOUR WORKYOUR WORK

HELP OTHERS HELP OTHERS PROMOTE THEIRSPROMOTE THEIRSGET OUT AND GET GET OUT AND GET

KNOWNKNOWN


(after you have completed the appropriate parts of the

Cultivation Cycle)

ASKASKASK AGAINASK AGAIN

ASK SOMEONE ELSEASK SOMEONE ELSE

Then of course there is responding for proposals—but you need to cultivate donors to get these, too!

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A few links, etc. to get you started

1) Look for competitions to enter. These are just a couple:M.I.T. Entrepreneurship Competition: $100k to get a business idea funded.

http://www.mit100k.org/ Technology-focused business plans seem to become winners.Buckminster Fuller Challenge, $100,000: They also have a very influential ideas index... energy,

environment, and agriculture seem to be in the winning categories.http://www.socialedge.org/features/opportunities/archive/2010/08/04/2011-buckminster-fuller-challenge

2) Grants & other important e-updates: The Foundation Center is the most central of these. Sign up for and scan lists. Keep up with who funds what.Philanthropy News Digesthttp://foundationcenter.org/pnd/profile/register.jhtml;jsessionid=KG3VTWFUBZKF1LAQBQ4CGXD5AAAACI2FThe Foundation Center: http://foundationcenter.org/profile/register.jhtml. Sign up for access to their searchable database!The Chronicle of Philanthropy – the “New York Times” of giving Sign up for the free newsletter versions of grant updates, news, etc: http://philanthropy.com/help/emails/Stanford Social Innovation Review: Click in the left corner to sign up for their free newsletter. A ton of good ideas: http://www.ssireview.org/Government grants: http://www.grants.gov/For US grants – sign up here for US gov grants by sending an email tothem. [email protected]

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Why fundraising is the one thing you will do that is most like dating to pick a mate but isn’t

You have to:

figure out where the funders are and go where they are

get to know the good people through other contacts

show funders why this relationship would be good for them (not just for you)

be willing to answer all questions, even if they are vague

play to win. If you don’t try, try, try again, you can’t win.

ask for things even if you might be told ‘no’ and not take ‘nos’ personally

learn to strategize to turn a ‘no’ into a ‘yes’

be in the relationship for the long haul

know who you are and what you are and why you are important: what makes you original but fit in

have plans, not just ideas--an idea without a plan is just a bad idea

hold up your end of the bargain

have patience: sometimes it takes time to make a good match

be flexible, but firm—know where your line in the sand is

strive for the best case scenario to be the asked, not the asker. Over time, you hope people come to you to get involved!

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Sign up for Katya Andresen….best advice there is on non-profits….

http://www.nonprofitmarketingblog.com/

http://www.mit100k.org/%22%20%5Ct%20%22_blank

Many larger funders are uninterested in small donations...bring them big ideas they can get involved with, steward, and put their names on....Get used to thinking in terms of $100k projects....or larger. $10k and $10k there is not going to keep Patterson alive...It needs start up/re-boot capital and actual hired expertise...

Thank you!!!

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Appendix 1

Business Model BIG BETTORÊssential Questions *Can we create a tangible and lasting solution to a major problem in a foreseeable time frame?

*Can we clearly articulate how we will use large-scale funding to achieve our goals?*Are any of the wealthiest entities, individuals, or foundations interested in our issue and approach?

Example American Cancer Society. Rationale *Attract sizable donations because often the problem being addressed can potentially be solved with a huge influx

of money*Attract sizable donations because the organization is using a unique and compelling approach to solve the problem.

Typical Funding Streams

Relies on major grants from a few entities, individuals, or foundations to fund operations.

Pros *Can ensure larger operations on certain key projects, at least during the time of the grant.*Large program mgmt fees can contribute substantially to funding and back office stability*Fewer donors = Relatively easy stewardship & reporting requirements …sometimes

Cons *Fierce competition *Must go educating, cultivating, engaging, “friendraising” and fundraising beyond current “crop.”*Fewer large donors *Donors may not recommit over time, leaving successful single-donor programs in the lurch.*Large donors often want to proscribe issue areas and approach.

Capacity Needed *Streamlined vision *Strong on-site proposal writing teams *Strong ability to cultivate high net worth relationships over time

Potential Non-profit Business Funding Models– skip to the last slide for a potential model for PS

Business Model POLICY/PROGRAM INNOVATORÊssential Questions *Do we provide an innovative approach that surpasses the status quo (in impact and cost) and is compelling

enough to attract government funders, which tend to gravitate toward traditional solutions?*Can we provide government funders with evidence that our program works?*Are we willing and able to cultivate strong relationships with government decision makers who will advocate change?*At this time are there sufficient pressures on governments to overturn the status quo?

Example Adoption agencies, some schools, etc.Rationale *Novel methods to address social issues that are not clearly compatible with existing government funding

programs. *Government funders support these alternate methods because solutions are perceived as more effective and less expensive than existing programs.


*Rely on money from governments.

Pros *Governments need cheaper and more innovative solutions to certain problems than they can provide. *Large contracts provide stable funding streams. *Helps build alignment among European countries around agenda in the South Caucasus.

Cons *Government priorities or policies can change *A group might be under pressure to provide services peripheral to its core mission.

Capacity Needed * Management. Fiscal oversight, trained staff

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Business Model DONOR ADVISED FUNDS/PHILANTHROPIC FUND MANAGEMENTEssential Questions *Can we offer a service no one else can provide as well as we can? *Is there sufficient demand for our service?

*What is the long-term potential for our service? *Do we know enough individuals or companies whose philanthropic interests you could manage? *Is our board well connected to individuals and corporations that have philanthropic interests?

Example The California EndowmentRationale *Could provide a civil sector bridge service of sound fiscal management and oversight.

*Potential philanthropists need cheaper and more innovative solutions to certain problems than they can provide. *Potential philanthropists need sound fiscal management. *Potential philanthropists need sound advice and insight into what to fund.


*Grow large by adding more and more projects that raise more and more money. *Managing the foundations or philanthropy of many different groups, interests, people, etc.

Opportunity for Patterson for growth

* Manage philanthropic assets for wealthy individuals. *Potential with corporations, businesses, or philanthropists entering or interested in the region.* Do fiscal management ONLY of projects. *Develop programs from ground up for a fee.*Offer fiscal sponsorship, guidance, and counsel to fledgling projects, allowing their leadership to work on their idea immediately, without the red tape and hassles of starting from scratch.

Pros *Local climate for nonprofit projects must be suitably complicated in terms of managing financial and legal entities. *Project leaders must also have sustainable ways and suitable training to earn revenue for their projects beyond the life of the grant.*Generates unrestricted revenue. *Validates Patterson’s thought-leadership role. *Can work with interested parties to meet their philanthropic interests.

Cons *May need to expand beyond mission areas *Possibly more reporting and “high touch” stewardship. *No history of this at Patterson*Must set minimum limit of funds & skillfully negotiate very specific parameters of grantmaking function upfront to make the assets management worth it. *High cultivation costs: Must be targeted & audience-specific outreach, promotion, and advertising of services.

Capacity Needed *Staff to do program advisement *Staff to cultivate potential philanthropists *Staff trained to guide philanthropists through a streamlined processBusiness Model FEE FOR SERVICE

Essential Questions *Can we offer a service no one else can provide as well as we can? *Is there sufficient demand for our service?*What is the long-term potential for our service?

Example FARM Café in BooneRationale *Secure “unrestricted” funding from providing services.Typical Funding Streams

*Grow from selling a service, even if that service is not mission driven.


* Can expand on mission—already have lots of physical infrastructure. Can become dual income generator and educational attraction

Pros *Generates unrestricted revenue. Cons *Can eat up the time of a lot of the most expert & senior staff.

*May need to expand beyond mission areas Capacity Needed *Staff dedicated to income generation *Staff trained in fee-for-service business model and its expansion

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Business Model FOUNDATION CONSORTIUM/COLLABORATIVEEssential Questions *Is there a group of foundations interested in our issue? *Can we bring them together to help us fulfill our mission? Example National Council of ChurchesRationale Large coordinated, aligned pools of money & talent can produce powerful change.Typical Funding Streams Supported by a group of foundations: a funding collaborativeOpportunity for Patterson for growth

*Potential to lead due to deepest experience and expertise, and strong infrastructure for fund management*Potential for coordinated action on a massive scale

Pros Need to have large foundations willing to commit to multi-years of funding.Cons *Must do extensive and thorough outreach toward creating this model. What happens when one foundation drops out?

*Need to negotiate *Governance challenges *Program and priority challenges *Tend to be somewhat bureaucratic /paper heavy

Capacity Needed *Streamlined vision *Staff dedicated to consortium management/oversightBusiness Model HEARTFELT CONNECTORÊssential Questions *Have a large cross section of people already shown that they will fund causes in this domain?

*Can we communicate what is compelling about our nonprofit in a simple and concise way?*Does a natural avenue exist to attract and involve large numbers of volunteers?*Do we have, or can we develop, the in-house capabilities to attempt broad outreach in even one geographic area?

Example *Make-a-Wish Foundation *The Susan G. Komen FoundationRationale *Grow large by focusing on causes that resonate with the existing concerns of large numbers of people at all income levels.

*Rationale is that many people giving money adds up to a whole lot of money. *People who give will often give even more. *People who have a something to participate in will give more.

Typical Funding Streams *Build explicit connections between volunteers through special fundraising events: e.g. Susan G. Komen Race for the Cure = 1 million participants. Average donation = $33.


*Run some pilot projects with a “heartfelt” theme aimed at local communities*Educate on the need for institutionalization of even small giving (*People give ALL THE TIME in the region; they give to their friends, neighbors, etc. They give like we all do: to people we know and trust first, even if other people or causes are more deserving.

Pros *Involves many people – they become the bearers of your good news – multiplier effect.*Good for Patterson for community

Cons *Grows by growing volunteer base which tends to be difficult to manage well.*Dependent on local initiative and ability to give. *Difficult for Patterson to directly connect to a “heartfelt” cause as a grantor and intermediary

Capacity Needed *Marketing and public relations integrated into programs and fundraising *Staff training to integrate marketing and public relations into programs and fundraising

Business Model PUBLIC PROVIDERÊssential Questions *Is our organization a natural match with one or more large, preexisting government programs?

*Can we demonstrate that our organization will do a better job than our competitors?*Are we willing to take the time to secure contract renewals on a regular basis?

Example (External examples) *Success for All Foundation *TMC (formerly the Texas Migrant Council)Rationale In some cases, the government outsources the service delivery function but establishes specific requirements for nonprofits to

receive funding, such as reimbursement formulae or a request for proposal (RFP) process.Typical Funding Streams Work with government agencies to provide programs or services, such as youth leadership or business development, for which

the government has previously defined and allocated funding.Opportunity for EPF for growth

*Management of service provision or programs related to NGO’s mission objectives*NGO support or institution building programs

Pros Gov’t needs cheaper solutions to certain problems than it can provide.Cons *What happens when gov’t interests change? *Could EPF provide a service and remain neutral?Capacity Needed

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Business Model DIVERSE FUNDING SOURCES: Heartfelt provider, fee for service, public provider—see previous slides for details on these

Essential Questions *Do we know have enough expertise in diverse fundraising strategies to attempt many at once? What deep training needs to we need to have settled first? *Do we have the capacity to attempt many fundraising strategies at once? *Can we attract powerful people with money to be our allies? *Can we manage both a fee for service model and other types of fundraising?*Who will invest in our launch of branching into new streams? Can they invest enough to bridge us till we are money making in those new streams?

Example (External examples) *Free Trade Shops at Lutheran Churches (the Netherlands/Germany); *Womens Sports Foundation (WSF) Local Initiatives Support Corp (LISC)

Rationale *Programming or environment calls for varied, nimble responses to changes that can come at any minute.*Organizational impact requires varied approach


* Varied & Diverse: ie. a church might receive revenue from: *charitable donations, thrift store (staffed by volunteers = in kind donations); government grants (ie “faith based” initiatives); *nonprofit community development corp; *rental income, *etc. *LISC (largest US Community Development intermediary) is funded through*direct contributions *fee for service (trainings, etc) *For profit tax credit syndication subsidiary (upstreams 10 MIL/yr)*Government funding (HUD, CHDO), etc.

Opportunity for EPF for growth

* Diversifying funding streams is essential for longevity of Patterson School*More funding equals more programming.

Pros *Diversification of funding streams allows for a more nimble response to changes in any one of Patterson’s funding streams (as one diminishes, there is the potential to upgrade another). *Strategic outreach to new sources and more people involved potentially raises Patterson profile

Cons *Must have staff skilled in stewardship and cultivation strategies throughout the organization (including program staff) in order to identify and leverage opportunities *Need initiative and appetite to attempt new methods. *Need powerful people and entities on your side.*Need for ongoing and aggressive relationship building *Requires full Board support and an open rolodex*More donors/inventors = more reports and output channels

Capacity Needed Must have staff skilled in stewardship and cultivation strategies throughout the organization (including program staff) in order to identify and leverage opportunities *Need initiative and appetite to attempt new methods. *Need powerful people and entities on your side.*Need for ongoing and aggressive relationship building *Requires full Board support and an open rolodex*More donors/inventors = more reports and output channels

The potential right business model for the Patterson School– a mix of the others

^Based upon models from: Source URL for 10 most successful single source dominated-nonprofit business/funding models: http://www.ssireview.org/articles/entry/1230/

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Appendix 2 – Types of Boards and types of people, some possible descriptions….

Ambassadors Circle: for your very high level people that can't come to board meetings but will still reach out on your behalf at key moments.

Board of Directors: for your actual voting members with power, money, and/or influence. Responsible for the fiscal health and they get to vote. Includes a couple of people that would also qualify for the next designation.

Board of Advisers: Can overlap some with Board of Directors...but consists of all of those people who understand the mission and care--and will help out with advice, insight, hands-on, but cannot bring significant power, money or influence to the table. Have a few of these on the BoD in order to balance out the perspective and the voting power. Includes community members, etc.

Documents

V3 patterson school_fundraising_potential_plan