Fund and Resource Development
Generating income & resources to support your organization’s programs
Presented by Chiquita T. Tuttle, MBA
May 7-8 2009
2nd Utah AIDS Institute
Calvary Baptist Church
1090 South State St.
Salt Lake City, Utah
Learning Objectives



To learn techniques for acquiring new
donors to broaden your base of support
To discuss additional types of resources
for organizational success
To examine giving patterns by sector
Learning Objectives



(con’t)
To understand the Donor Pyramid
To identify and become aware of
Fundraising Mistakes
To have tangible tools to use at your
workplace
Outcomes



Participants will be able to understand and learn how
to develop a fund raising and development plan for a
non-profit organization through four steps: design,
development, execution and evaluation.
Participants will recognize the difference between
grant writing and fund raising.
Also, participants will learn how to assess the fund
raising needs of the organization.
Who is today's Audience?

Introduction of participants




Name, agency, area of responsibility
Your role in development
Your organizational challenges
Your expectations/ take away
Fundamentals







Fundraising is a specific skill
Requires planning
Is strategic
Is difficult in these economic times
Requires strong relationship skills
Demands communication
Highly accountable
Culture Shift

Shifting from “Reacting” to “Acting”

Change organization language from


We hope to ……..
We intend to
to
10 REASONS WHY PEOPLE GIVE



1. They have a deep and sincere belief in the
organization and its purposes.
2. They believe that the current needs of the
organization are important, both personally and
for the sake of the community.
3. They have a sense of loyalty, gratitude, and
affection toward the organization. These donors
could be current or former clients, staff members,
board members, or the families of any of these.
10 REASONS WHY PEOPLE GIVE (con’t)



4. They have a friendship with and respect for
those who solicit them and by donating to the
organization, they show support for their friends.
5. They want to thank and honor the organization
for past services and/or honor staff and volunteers
who work/have worked at the organization.
6. They want to ensure the organization can
continue to fulfill its mission and that services
continue for the future good of the community.
10 REASONS WHY PEOPLE GIVE (con’t)

7. They appreciate the peer involvement they have
cultivated through board and volunteer activities.

8. They are aware of the tax benefits of charitable giving
and want to maximize their tax considerations.

9. They want to be recognized as a supported of the
organization or have a loved one publicly recognized.

10. Because they feel that here and now, supporting
this particular organization is the right thing to do.
Engagement Continuum
DONOR
$
Invest
Involve
Interest
$
Inform
Invite
Identify
TIME
Engagement Continuum






Identify
Invite
Inform
Interest
Involve
Invest

RESULTS = DONOR = INSPIRED
Donor & Constituency Segments








Current/former clients, patients, alumni
Corporations/vendors
Foundations
Local Businesses, former businesses
Community Leaders
Civic Organizations
Extended Families of clients/patients/alumni
Churches/current or former staff
Solicitation Techniques






Personal, face to face, Telephone
Personalized letter
Impersonal: Direct Mail; telemarketing
Special Events
Door–to-Door
Media
The Donor Pyramid
Planne
d Gifts
Capital
Donor
Special
Gifts
DonorDonor
Renewed
Newly Acquired
Donor
The Universe
What About the Donor ?




See the world from the donor’s point of
view
Give the donor consistent, excellent
attention and information
Seek donor loyalty
Speak to the Listening
What About the Customer/Donor ?

People feel they can make a difference by
aligning themselves with a charitable cause,
and they want to feel better for having done
so. Money, time, or other gifts donated are
only a tool to help donors feel better.
Donor Cultivation & Recognition



Reaching out to donors and potential donors is
easier than you think
Success can be as simple as giving people what
they want, but with a little more than they
EXPECT!
Challenges and obstacles inspire us to do our
best and to excel at outstanding donor relations
Five Things One Board Member Can Do to
Raise $100 to $5,000


Make a personal contribution.
Hand write a short note to the board
president explaining why you are
making the contribution, and give the
check and note to him or her as you
leave the board meeting.
Five Things One Board Member Can Do to
Raise $100 to $5,000 (con’t)


Write a letter and send it to ten friends and
relatives. In the letter, explain why you
volunteer your time at the agency.
Ask them to consider making a contribution
to the organization, and let them know they
can send the check to you or directly to the
organization. (If you send out a holiday letter,
you can include this in your letter.)
Five Things One Board Member Can Do to
Raise $100 to $5,000 (con’t)

Together with two or three other
board members, pledge significant
gifts. Then write a letter to the rest of
the board showing your collective
commitment
Five Things One Board Member Can Do to
Raise $100 to $5,000 (con’t)

Host a dessert party in your home or
business and invite twenty friends and
relatives. On the invitation say that they
will learn about the organization, be asked
but not pressured to make a contribution,
and enjoy a great dessert. Hold the party
on a weeknight around 7 pm
Five Things One Board Member Can Do to
Raise $100 to $5,000 (con’t)

Volunteer to match the contributions from
other board members. Tell the board that
you will match, dollar-for-dollar, every
contribution from a board member before
December 31, up to a specified total.
2008 Foundation Giving
Outlook for Corporate Foundation Giving
100%
80%
60%
40%
28%
29%
18%
19%
54%
52%
25%
11%
64%
29%
18%
54%
20%
0%
All
Independent
Foundations
Increase
Source: Foundation Center, April 2008
Community
No Change
Decrease
Corporate
Words you need to
know
Glossary of Terms

Case – Prepared reasons why a charitable
institution merits support including its
potential for greater service, its needs,
and its future plans
Glossary of Terms

Cultivation - the process of promoting or
encouraging interest, and or involvement on the
part of a potential donor or volunteer leader, an
education process to inform about an institutions
reason why it merits support
Glossary of Terms

Donor Profile - a description of basis
information about an individual donor
through research
Glossary of Terms

Engagement Continuum – a continuum of
involvement over time that yields great
financial support from a donor
Glossary of Terms

Major Gift: a gift of significant amount
which may be repeated periodically
Glossary of Terms

Prospect- any logical source of support,
whether individual, corporation,
organization, government at all levels or
foundation
Glossary of Terms

Constituency – All people who have in
some fashion been involved with the
institution seeking support
The Development Plan


A good development Plan can move an
organization from putting out fires and
going from one crisis to the next to…
Creating a positive flowing work plan in
which all participants have the
opportunity to do their best, be their
best and achieve their best.
A Plan is a Working Document

Commit from the beginning of your
development plan to frequently assess
and adjust --
Four Steps of the plan




Design
Development
Execution
Evaluation
Fundraising: Steps for a Successful
Development Plan



If you don’t know where you’re going, how
are you gonna’ know when you get there?
–Yogi Berra
When you are ready to start fund raising, start with a
development plan. A plan not only tells you where
you are going, but also tells you how you will get
there. It also lets you mark your progress and make
changes along the way.
Patrick O'Heffernan
,
Social Edge, A program of the Skoll Foundation
Set Objectives


Start planning one or two months before your fiscal
year begins.
Set precise objectives:

How much you are planning to raise in the next year, in each
category of support –



Unrestricted/restricted funding, program grants, in-kind
support.
Long term pledges to help you accomplish your mission.
Capital campaign.
Prospect / Rating / Amount
--Design--

Next take a piece of paper (or a spreadsheet) and make 3 columns
labeled: “prospect,” “rating,” and “amount.”




“Prospects” are those people and organizations you plan to raise money
from – development banks, foundations, individuals, etc.
“Rating” is your confidence in their giving.
“Amount” is how much you plan to ask for, based on what you think they
are capable of giving.
Compare your prospects to your objectives -- chances are they will not
match. You may have too few prospects, or the wrong kind and you
will have to either adjust your objectives or expand your prospect list.
Prioritize



Now decide on a strategy using these prospects that
will come closest to your goals.
It could be led by renewals of existing foundation
grants, or applications for regional development
funds or private donors, or online and email
campaigns.
Use the list you made of prospects and their ratings
to set priorities.
Timing



Then draw a monthly action calendar for the year to
implement that strategy.
Use a large piece of paper making sure you indicate
holidays and celebrations that occur in each month like
Cinco de Mayo, Black History month, ethnic holidays, Purim,
Christmas, Buddha’s birthday, The Festival of the Moon,
local celebrations and heavy vacation months.
This insures that you do not schedule events when
prospects are not available.




Calendar
--Execute -Next list the actions needed to meet, recruit, and ask each
prospect, and post them into the appropriate months.
In the case of foundations and development banks, write in
the month proposals or renewals are due and the month you
start writing them
In the case of individual donors, lay out the events you wish
to invite them to, including private meetings, and enter
them onto the calendar.
If you have a large staff, you can have each staff member
post her or his events or deadlines with post-it notes.

Step back
--Evaluation-Step back and look at the whole picture – a large calendar
covered with notes and ask questions.






Are there months with too many events and deadlines?
Have you planned cultivation during holidays or vacations?
Has staff planned events too close to each other?
Have you forgotten to leave proposal circulation time for
development banks?
Have you missed a grant deadline?
Rework the calendar until each prospect’s cultivation and request
flows well and works with other deadlines and events as well as with
holidays.
Strategic and practical questions
to be weighed and sorted

What other ways of raising $$ are consistent with and might even
further our organizational mission and values

What would other ways cost us, in time and $$, during development,
execution, and over time

Do we have the organizational capacity to take on and stick with this
plan

How will we set reasonable expectations that we can use to evaluate
how new ways are working?

Alice Cottingham, Girl's Best Friend Foundation
Design
Field Guide to Nonprofit Program Design, Marketing and Evaluation
Carter McNamara, MBA, PhD, partner in Authenticity Consulting, LLC
Development
Joan Flanagan, Author
Execution
Richard Mintzer, Author
Evaluation
Ilona M. Bray, Author
Keys to your
Fundraising Success
Fundraising Tips



Figure out how much it will cost to accomplish what you
want. Make a CAREFUL, SPECIFIC budget for the year,
detailing what you need to spend for each item.
Figure out how much money you can count on already,
and how much you will have to raise.
Source: (www.nchv.org/fundraising.cfm)National Coalition for Homeless Veterans Fundraising Tips
Fundraising Tips
Before you even think about raising money…..



Be very clear about what your organization is
and why it exists.
Be very clear about what your organization
wants to accomplish in the next 12-18
months. What do you want to do?
Figure out how much it will cost to
accomplish what you want. Make a careful,
specific budget for the year, detailing what
you need to spend for each item.
Fundraising Tips
Before you even think about raising money…..



What kind of staff and organizational capacity
is needed to support this funding mix? What
restrictions are attached?
How much time will it take to keep this
funding mix intact?
Does it provide for the long-term financial
stability and viability of the organization or
would a different funding mix be better?
Fundraising Tips
Before you even think about raising money…..



Figure out how much money you can count
on already, and how much you will have to
raise.
Remember that once you have planned your
fundraising, you will need to go back and
modify your budget to add in the cost of
fundraising. Raising money always costs
money; it may not cost a lot, but you still
need to budget for it.
Check local laws. Do you need a license or
permit?
Fundraising Tips
Before you even think about raising money…..







It's always a good idea to know where your current funding
comes from…..
Do you have a balanced mix of funding resources? Write down
what you know about each percentage of the whole, and what
you think it should represent, for example:
Corporate contributions = 10%
Foundations = 20%
Government = 40%
Special events = 10%
Individual donations = 20%
Fundraising Tips
Before you even think about raising money…..
Businesses
 Regional and national corporate offices
 Community small businesses
 Veteran-owned businesses
 Your vendors
 Community subsidiaries of companies,
financial institutions, utilities, and
manufacturing plants
Fundraising Tips
Before you even think about raising money…..
Service Organizations
 Local veteran organizations
 Local service clubs (Lions, Elks, Kiwanis,
etc.)
 Professional societies
 National service organizations
Fundraising Tips
Before you even think about raising money…..
Federated Campaigns
 Combined federal campaign
 Local United Way (as a member agency or via
discretionary funding)
Governments
 City or County
 State or federal
 Quasi-governmental structure (councils of
government, school boards, etc.)
Fundraising Tips
Before you even think about raising money…..
Individuals
 Bequests and planned gifts
 Direct mail
 Face-to-face solicitation
 Workplace solicitation
 Canvassing or prospecting
 Special events

Find a champion for your agency!
Fundraising Tips
Before you even think about raising money…..
Special Events Planning Tips
 Choose something you know how to do, and
involve others with valuable experience.
 Plan backwards. To calculate deadlines and
plan activities, start with the day of the event
and work your way back to the present day,
in order to make sure that everything gets
done when it needs to be done.
Fundraising Tips
Before you even think about raising money…..
Possible Sources of Revenue to Tap
 Foundations
 Community
 Local and family
 Private
 Corporate
Fundraising Tips
Before you even think about raising money…..
Religious Institutions
 Churches and temples in your
community
 Affluent suburban and metropolitan
congregations
 City-wide, state-wide, or regional
denomination structures
Fundraising Tips
Before you even think about raising money…..
Income-Producing Activities
 Program related services
 Fee-for-service
 Training or technical assistance
 Consultation
 Development and sale of materials
 Publications
 Product sales (i.e., shirts, buttons, mugs,
posters)
Fundraising Tips
Before you even think about raising money…..

Write out your plan.


Figure out how long you think it will take, and
then increase that estimate by at least half!
Arrange publicity

Be sure people know about the event. Don't be
shy about asking for help-but when you ask, be
specific about what you want.
Remember the job of the chairperson is not
necessarily to accomplish things directly; it is to
ensure that other people accomplish things.
Fundraising Tips
Before you even think about raising money…..

Special Events Follow-up

Send thank you notes within a week. It is
okay to use a boilerplate letter if there
were many volunteers, but add a few
words in your own handwriting to
key volunteers. It is a good idea to include
vendors.
Fundraising Tips
Before you even think about raising money…..

Finish bookkeeping and pay
vendors.

Prompt payment will make you a favored
customer to any business. That will be
handy the next time you seek a donation
or a price break
Fundraising Tips
Before you even think about raising money…..

Contact individuals you met at the
event that might be future donors or
volunteers. A note or invitation to lunch
may get them on board early for the
next event.
Fundraising Tips
Before you even think about raising money…..

Organize your notes for the next time.
A three-ring binder for each event is a
good place to put notes and reports
Fundraising Tips
Before you even think about raising money…..


Additional Information Resources
Successful Fund Raising: A monthly report of
successful fundraising ideas, strategies and
management issues. For information and
subscription costs visit
www.stevensoninc.com or call 712.239.3010.
A.H. Wilder Foundation Publishing Center has
a wide variety of topics for nonprofits. For
more information or to request a catalogue
visit www. wilder.org or call 800.274.6024.
Fundraising Tips
Before you even think about raising money…..



Jossey-Bass Publishers has a variety of topics
for nonprofits. To view their publication
selection visit www.joseybass.com.
America's Fund Raisers is an Internet
directory of fundraising products, services
and resources. Visit
www.americasfundraiser.com or call
977.949.FUND.
eFundrasing.com is an Internet resource for
fundraising opportunities. Visit
www.efundraising.com or call 800.561.8388.
Fundraising Tips
Before you even think about raising money…..



The Society for Nonprofit Organizations publishes Nonprofit World
magazine on a bi-monthly basis. For information and subscription
costs visit www.danenet.org/snpo or call 800.424.7367.
Contributions Magazine produces a newspaper full of resources for
nonprofit professionals. F or information and subscription costs visit
www.contributionsmagazine.com or call 508.359.0019.
Association of Fundraising Professionals (AFP) represents thousands
of members in hundreds of chapters in the U.S., Canada, and
Mexico. AFP works to advance philanthropy through advocacy,
research, education, and certification programs. For more
information and membership fees visit www.afpnet.org, call your
local chapter or 703.684.0410.
Fundraising Tips
Before you even think about raising money…..


Donordigital.com has information about
fundraising, marketing, and For more
information visit www.donordigital.com or call
415.278.9444.
The Chronicle of Philanthropy website has
useful articles in the fundraising section in
additional to publishing a resourceful
newspaper for the nonprofit sector. For more
information and subscription costs visit
http://philanthropy.com or call 800.842.7817.
Fundraising Tips
Before you even think about raising money…..


The Alliance of Nonprofit Mailers website has
important information for mail-based fundraising at
nonprofit rates. For more information visit
www.nonprofitmailer.org or call 202.462.5132.
In addition, government websites usually provide
information about government sources of funding.
Visit www.firstgov.gov to access federal sites, or type
www. (your two-letter state designation).us for your
state's website.
Raising Funds Effectively

Must Do:








Research – data gathering
Analyzing and discerning
Decision making
Strategizing about decision implementation
Implementation
Analyzing results compared to goals and
determining future steps and plans
Reporting actions and result
Celebrate success
13 Most Common
Fund Raising Mistakes



Doing everything but ASKING
Thinking that fund raising is for fund
raisers ONLY
Plunging in with one foot


Clear institutional statement of purpose
Top level support – Trustees, Advisors etc.
13 Most Common
Fund Raising Mistakes




Disregarding prospect research and
record keeping
Forgetting to concentrate on individual
donors
Overlooking past donors
Putting too much faith and money into
brochures
13 Most Common
Fund Raising Mistakes






Failing to guide and cultivate volunteers
Promising the world by Friday at the latest
Refusing to recognize factors beyond your
control
Ignoring sophisticated tax saving incentives
Keeping too may secrets
Looking upon your work as a job rather than
a cause
Connect with your Colleagues
Imagine if ………..What if………



Think outside the Box
Be creative
Explore the possibilities
Thoughts about donors


“A donor may not always be right,
but the donor is always a donor” –
Wayne Olson
“Kill them with kindness” – Lester
Olson
Fundraising Success

Renew, Upgrade, Grow!
Philanthropic Resources
Alliance for Nonprofit Management
Association for Healthcare Philanthropy
Association of Fundraising Professionals
Center on Nonprofits and Philanthropy
Charity Channel
Council of Better Business Bureaus
The Chronicle of Philanthropy
The Chronicle of Higher Education
Corporate Philanthropy Report
Council on Foundations
Council for Aid to Education
Philanthropic Resources

Ford Foundation
Foundation Center
Fundraisinginfo.com
Global Fundraising Jobs
Guidestar
Internal Revenue Service
Internet Nonprofit Center
National Black United Fund
National Center for Charitable Statistics
National Council of Nonprofit Associations
National Society of Grant Writing Professionals, Inc.
Nonprofit Overhead Cost Project - Guides and Briefs available (pdf)
Nonprofit Times
Taxwise Giving & Philanthropy Tax Institute
Women's Philanthropy Institute at the Center on Philanthropy,
Indiana University
Summary of Today







Fundraising is hard work
It is a function of everyone
Strategy is key
Planning is critical
It changes over time
Requires constant evaluation
Fundamental to the existence of your agency
Learning Objectives



To understand the Donor Pyramid
To identify and become aware of
Fundraising Mistakes
To have tangible tools to use at your
workplace
Learning Objectives



To learn techniques for acquiring new
donors to broaden your base of support
To discuss additional types of resources
for organizational success
To examine giving patterns by sector
Celebrate your Success




Congratulate yourself and peers for
work well done
Talk about what worked well
Analyze what did not work
Learn from your mistakes
Never forget the Thank You

You can NEVER say Thank You
enough to your donors,
volunteers, staff.
Fund and Resource Development
Thank you for your participation
Chiquita T. Tuttle, MBA
May 7-8 2009
2nd Utah AIDS Institute
Calvary Baptist Church
1090 South State St.
Salt Lake City, Utah