Welcome!

Diversify Your Funding:

An Introduction to Fundraising Planning

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Our Speaker

David Holmes

Regional Training Coordinator

Foundation Center-Cleveland

Currently responsible for creating, managing and delivering training programs in support of capacity building of nonprofits in Cleveland, and in the mid-western United States.

BA in English from the University of Pittsburgh

MA in Literature from Villanova University

MS in Library Science from Kent State University

What You Will Learn Today

An overview of how to develop a diverse fundraising plan, including:

• Conducting an assets inventory

• Developing a case statement

• Setting realistic fundraising goals

• Diversifying funding partners

• Preparing a timetable

The Importance of Fundraising Planning

• Helps you set priorities

• Increases board involvement

• Assists in diversifying your fundraising vehicles

• Limits crisis fundraising

Source:The Nonprofit Sector in Brief, 2011. National Center for Charitable Statistics,

The Urban InstituteOther2.1%

Fees for Services & Goods from Private

Sources52.4%

Private Contributions

13.6%

Sources of Revenue for Reporting Public Charities, 2009

Fees for Services & Goods from Government

23.2%

Government Grants8.9%

Securing Your Organization’s Financial Stability

A Step-by-Step Approach to Fundraising Planning

1. Presenting a strong mission statement and vital programs

2. Conducting an assets inventory for your organization

3. Creating a dynamic case statement

4. Setting realistic fundraising goals

5. Diversifying funding mix for your organization

A Step-by-Step Approach to Fundraising Planning, continued

6. Formulating strategies for raising money

from individual donors

7. Formulating strategies for raising money from institutions

8. Putting the fundraising plan/calendar together

9. Making the approach/Building relationships

10. Monitoring and evaluating your fundraising effort

Presenting a Strong Mission Statement

Sample mission statement“The mission of the Biloxi AIDS Service Organization is to help people both infected and affected by HIV/AIDS to secure adequate nutritional and health support to enhance their lives.”

Sample vision statement“Our ultimate goal is a world without HIV/AIDS.”

Conducting an Assets Inventory for

Your Organization

Assess Strengths in the Following Areas:

• Program

• Board and staff

• Organizational

• Funding

Case Study: Youth for Community Action

The Youth for Community Action (YFCA) program was launched two years ago by a large children/youth services agency to teach high school students leadership and community organizing skills. Annual activities include monthly meetings, skill-building retreats, a free one week summer camp (run with other youth service agencies), and educational events.

In the past year, 25 youth participated from two high schools. The majority of participants from the first year stayed in the program. They currently have a waiting list and they would like to expand the program to other high schools for a total of 50 students. To do so, they need to almost double the program budget to $68,000.

YFCA was made possible by $20,000 in seed grants from three foundations; to date, one has committed to continuing support. In addition, the youth have agreed to help with fundraising as part of their skills training, and some parents expressed interest in contributing or helping to raise funds.

YFCA fulfills an important need. It is the only project in the region that works with teenagers to promote activism in partnership with community organizations, government and educational institutions. The program is successful, with the need to expand its services. The challenge is to find new funding sources and think of additional income streams.

Establishing Your Case for Support

• The reasons why your organization both needs and merits philanthropic support

• Include:– Mission

– Programs and services

– Accomplishments

– Plans for the future

– Budget needs

Setting Fundraising Goals

Types of fundraising goals

• Annual goal for the organization

– Example: $150,000 total budget

- $50,000 projected earned income

= $100,000 annual goal

• Program goal

– Example:

YFCA program: $68,000 budget for the year

Diversifying the Funding Mix for Your Organization

• Which funding partners do you currently have?

• Which funding partners are viable for your funding mix? Which partners will provide long-term security?

• What level of support can you expect from each partner?

• How much time and money will it take to secure additional partners?

Putting the Fundraising Plan/Calendar Together

1. Set a goal for each revenue strategy

2. Think through the details: who, when, what, where, and how.

3. Create a chart or narrative description outlining the details

Example: Fundraising from Individuals—The Gift Table

1-2 gifts = 20% of the goal $20,000

2-4 gifts = 20% of the goal $20,000

5-10 gifts = 15% of the goal $15,000

10-20 gifts = 10% of the goal $10,000

20+ gifts = 35% of the goal $35,000

TOTAL $100,000

Monitoring and Evaluating Your Fundraising Efforts

• Was the money raised worth the expenditure of time and effort?

• Laying the groundwork for next year

Review: Strategic Fundraising—The Steps to Success

• Identify your organization’s strengths and assets

• Create a case statement

• Set realistic fundraising goals

• Diversify funding mix for your organization

• Put together a fundraising plan and timetable

• Evaluate strategies to lay the groundwork for future fundraising

Resources on Fundraising Planning

• Securing Your Organization’s Future, Chapter 22, “Choosing the Funding Mix”

foundationcenter.org/getstarted/onlinebooks/seltzer/ text.html

• Free Management Library: Nonprofit Fundraisingmanagementhelp.org/fndrsng/np_raise/np_raise.htm

• Fund-Raising Forum Libraryraise-funds.com/library.html

• Grassroots Fundraising Journalgrassrootsfundraising.org

• Society for Nonprofit Organizations: Fundraising Guide

snpo.org/funding/index.php

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Questions

• Please type in chat at the bottom of the left hand viewing pane.

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FYI

• Contact David: dmh <at>foundationcenter <dot> org

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