Transcript Four Tried & True Keys to Fundraising Success

Fundraising I: Tried & True
Keys to Success
6th Annual Club MAC
June 15, 2006
Carole V. Rylander, CFRE
rylander associates
214.348.9086

[email protected]
Keys to Fundraising Success
 Organizational
 Adopting
Readiness
a Marketing Mentality
 Creating
a Compelling
Case for Support
 Establishing
Benchmarks &
Measuring Performance
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Begin with the end in mind.
-- Stephen Covey
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Fundraising Essentials
 A Good
Cause (what will change)
 A Natural Constituency (who cares)
 A Time Frame or Deadline
(urgency)
 A Dollar Goal (how much is needed
to create the change)
?
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Critical Concepts
 Synergy
 Keys
 Planning
 Systems
 Funds
Development is a process,
not simply an activity
 Relationships
& Matching
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Key #1:
Strategic Planning
Vision
Mission
Strategic or Long Range Plan
Goals and Objectives
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Fundraising Follows the
Planning Process!
Fundraising & Operating Action Plans
Strategies and Tactics
Budget
Case Statements
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Mission, Vision, & Strategic
Planning
 A primary
responsibility of the Board
 Verifies the relevance of the
organization to the community
 Staff is involved, especially with
action planning
 The process of creating the
plan is as important as the outcome
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Key #2: Adopting a
Marketing Mentality
 Constituency
Mapping
 Jargon
 Five
Steps to Marketing
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Constituency Mapping
 Theory
of Concentric Circles
 Importance:
 Divides
a Large, Diverse
Constituency Base Into “LikeMinded” Groups
 Identifies
Each Group’s Level of
Involvement
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Constituency Mapping
 Importance
(cont.):
 Acknowledges
Each Group’s
Differing Perspective and
Language
 Enables
the Delivery of Focused
Messages Designed to Stimulate a
Specific Response
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Constituency Mapping
 Importance
(cont.):
 Ensures
that Resources and Efforts
are Directed Towards Groups
Appropriately - According to the
Value of their Response
 Constituency
Mapping Exercise
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Constituency Mapping
Step 1 Identify all “like-minded”
groups in your
organization’s universe
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Constituency Mapping
Like-minded groups are not just
“individuals,” but groups of individuals
who :



Have the same relationship to the
organization,
Use the same language, such as
physicians, teachers, city council
members, or
Interact with your organization in the
same way
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Constituency Mapping
Step 2



Using three different
colors, circle constituents:
With financial resources
Who provide earned income (fees,
tickets, etc.)
With whom your organization
partners (a non-financial, strategic
relationship)
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Constituency Mapping
Step 3

Create a legend so
you’ll know what your
colors mean.
Some constituents will have all 3
colors of circles.
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Jargon
 Definitions:
 The
technical terminology or
characteristic idiom of a special
activity or group
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Jargon
 Definitions:
(cont.)
 Obscure
& often pretentious
language marked by
circumlocutions and long words
A
confused unintelligible language
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What Jargon Do You Use?
 Identify
Jargon:
 Create
a List
 Review Your Document(s) & Circle
Jargon
 Redefine
 In
Jargon
Every Day Words
 “Grandmother”
Principle
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Marketing
 Marketing
is all about exchanges.
 Marketing
is a process that helps
you exchange something of value
for something you need.
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Selling vs. Marketing
SELLING
MENTALITY is
Rooted INSIDE the
Organization
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Selling vs. Marketing (cont.)
MARKETING
MENTALITY is
Based OUTSIDE the
Organization—In the
Marketplace
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Marketing: Step One
LISTEN
to your Constituency!
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Marketing: Step Two
SEGMENT
Your Market
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Marketing: Step Three
STRATEGICALLY
TARGET
Those Segments with the
Highest Potential
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Marketing: Step Four
POSITION
the organization:
What
does it do well that
matters?
How
does it compare to what
other organizations do?
How
does it distinguish itself?
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Marketing: Step Five
COMMUNICATE
the Special
OPPORTUNITIES your
Program Presents in Terms
That Matter to the Target
Groups
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Marketing: per Peter Drucker
“The aim of marketing is to
know and understand the
customer so well that the
product or service fits them
and sells itself.”
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Q: So, how do I develop effective
marketing messages that
motivate potential donors to
action?
A: By creating an urgent
and compelling Case for
Support!
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Key #3: Creating a
Compelling Case for Suppot
 Definition:
A carefully prepared document
that sets forth, in detail, the
reasons why an organization
needs-- and merits-- financial
support . . .
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Case Statement: Definition
...In the context of the “case is bigger
than the institution,” it documents
[the organization’s] services,
human resources, potential for
greater services, current needs,
and future plans.
–From Glossary of Fund Raising Terms,
a publication of AFP
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What
We Hear
All The Time…
vs.
A Compelling Story!
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There is no perception
unless there is contrast.
–Ralph Coverdale
in Risk Thinking
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The Case Statement Is. . . . .
 An
internal document
 An
investment prospectus
 Prepared
by the development office
 The
basis for all marketing,
communications, program, &
development materials
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The Case Statement Is. . .
(cont.)
 Both
rational and emotional
 Optimistic
 Brief
 Easy
to interpret and remember
 Larger
than the institution and has
broad appeal
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The Case Statement Is. . .
(cont.)
The
single most important
document in the fundraising
effort!
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Elements of
the Case for Support
1. What is the organization’s
mission?
2. What has the organization
accomplished thus far? (its
history)
3. What does the organization do
and how is it structurally
governed?
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Elements of
the Case for Support (cont.)
4. What is unique about your
organization or proposed
project?
5. What is the problem? What
need does the program for
which you are seeking support
address?
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Elements of
the Case for Support (cont.)
6. Who is affected?
7. What solutions does the
program offer?
8. What methods will the program
offer?
9. What results have been
achieved thus far?
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Elements of
the Case for Support (cont.)
10. What resources and funds are
required and how will they be
used?
11. What endorsements and support
have already been provided for
the program? How much? From
whom?
12. What is in it for the donor?
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Giving Opportunities
(What’s In It for the Donor?)
 Are
drawn from the Case
Statement
 Can
Represent a wide range of
appealing fundable Items - $50 to
$25,000+
 Fulfill
Baby Boomers’ needs to
know their gift provided specific
tangible benefits
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Case Preparation
 Written
by one person
 New
rationales will emerge during
process
 Adaptable
 First
to many uses & formats
draft—then edit, edit, edit
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Case Preparation (cont.)
 Circulate
 Adopt
as a policy document
 Update
 Use
draft
periodically
it with staff and volunteers
 Create
case statements for each
program area
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Uses of the Case Statement
 Provides
common language for
board members
 Is
the basis of proposals &
brochures, as well as program &
campaign materials
 Assists
in leadership & volunteer
recruitment
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In Summary, A Case
Statement
 Is
designed to:
 Substantiate
an organization’s
opportunities and attributes,
 Define
benefits to the
contributor, AND…
 Stimulate
a monetary response!
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In Summary, a Case
Statement Is A Must:
The relationship between
programs, needs, and benefits to
donors must be communicated in a
persuasive “case” that motivates
the potential donor to action!
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Case Statement Handouts
 Elements
of the Case for Support
 Samples:
 The
Case for the Building Program
of Los Barrios Unidos Community
Clinic
 Los Barrios Unidos letter proposal
 The Case for the Anita N. Martinez
Ballet Folklorico
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Key #4: Measuring
Program Performance
 Provides
 Justifies
 Directly
evidence of impact
the organization’s value
links gifts to impact
 Strengthens
relationships with
funders
 Is
essential for renewing gifts
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Program
Performance Metrics
 Handout:
 Star/AmeriCorps
Evaluation Plan
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To Learn More . . .
 Association
of Fundraising
Professionals (AFP)
 25,000+
members mostly in the US,
Canada & Mexico
 Web Site: www.afpnet.org
 International Conference attended
by 4,000+ in spring of each year
 Dallas Chapter = 300 members
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To Learn More . . .
 Center
for Nonprofit Management
 Local
organization whose mission
is to increase the capacity of
nonprofit organizations to serve
the community
 Web
site: www.cnmdallas.org
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To Learn More . . .
 BoardSource:
 is
a 501(c)3 nonprofit organziation
dedicated to improving the
effectiveness of nonprofit
organizations by strengthening their
boards of directors.
 www.boardsource.org
 Individual
membership = $139 year
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Thank you!
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