1. Development An Introduction Shane D. Hudson

2. OVERVIEW 3. Whats It Called?

Development

Fundraising

Advancement

Its all raising $

4. Question?

Have you ever been approached by an arts organization to make a donation?

What tactics were used?

5. Development for the Arts

More important than ever

Many organizations adding positions

• Usually only one person

• Potentially higher salary

• Potentially unrealistic expectations

• CDOs becoming popular

40% - 60% of operating budget

Unearned income

6. Marketing and Development 7. Marketing and PR

Pay attention to your message and your reputation/brand

Communicate your goals internally as well as externally

Tell your story

Focus on the why not the what

Enlist the media in your efforts

8. Where Does The $ Come From? 9. INDIVIDUALS

Individual

• Gifts

• Bequests

• Events

10. CORPORATIONS

Corporate

• Grants/Gifts

• Sponsorships

11. FOUNDATIONS

Foundations

• Family

• Community

• Private

• Public

12. GOVERNMENT

Government

• Local

• State

• National

13. Ongoing Support

The Annual Fund

• Annual (or more frequent) appeals to a core group of constituents.

• Such funds are usually unrestricted (available for any use)

• May represent a large percentage of your annual income.

14. Realign The Annual Fund

Old Silos

• Annual Giving at the low end

• Major Gifts

• Capital Campaigns

• Planned Giving (Bequests)

New Hub

• Gifts build on one another

• Annual Gift is the Hub

• • Help Engage Donor

15. Ongoing Support

Multi-Year Grant

• A grant-giving organization such as a foundation may provide restricted funding for a particular project or program

• Or, unrestricted funding to help cover the overhead costs of running the organization

16. Ongoing Support

Endowment Income

• Many large nonprofits, particularly higher education institutions and healthcare organizations build up large endowment funds

• These fund produce interest that is used to support the organization.

17. Episodic Funding

Foundation or Corporate grants

Special events

Bequest

Government Support

• These funds may be restricted to one purpose or devoted to unrestricted use by the nonprofit.

18. The Capital Campaign

A capital campaign is a multi-year fundraising campaign with a particular goal such as:

• Funding a new building

• Raising funds for a particular project, such as cancer research

• Increasing a particular asset such as an endowment

19. Planned Giving

Most nonprofits now have planned giving programs which enable a donor to confer a gift at the time of his/her death

Or to give a large gift immediately while receiving income during the donor's life.

20. TRENDS 21. How Is It Given?

$303.75 Billion in 2009

• 75% Living Individuals

• 8% Bequests

• 13% Foundations

• 4% Corporations

• 88% From All Individuals (living, bequests, family foundations)

22. Trends Nonprofits

Long Tradition in US

Indispensable role addressing social issues

1.5 Million in US

5% of Gross Domestic Product

Giving Exceeds $300 Billion Annually

23. Trends In NC

10,000 Nonprofits

400,000 Jobs (10% of workforce)

$13 Billion in Wages

Most Are Small (Only 20% w/budgets of $100,000+)

24. Where Is It Going?

33% to Religion

13% to Education

10% to Foundations

9% to Human Services

7% to Health

8% to Public-Society Benefit

4% to Arts and Culture

3% to International Aid

2% to Environment/Animals

1% to Individuals

25. 26. 27. 28.

The Association of FundraisingProfessionals (AFP) reported a 10 to20 percent drop in charitable donations.

Some studies put the figure higher at30 percent since the start of theeconomic recession.

29. Impact of the Recession

Overworked, Underpaid, Underappreciated

Lack of Resources

Often Lack Training

Expected to do More with Less

Greater Pressure to Raise More $

Rising Demand to:

• Be more effective, efficient, transparent, accountable

• Show and measure results/impact

30. Priorities for Arts

Multi-Year Giving

General Overhead

Endowment Funding

Small Grants

Challenge Grants

31. DONOR RIGHTS 32. Donor Bill of Rights

"Philanthropy is based on voluntary action for the common good. It is a tradition of giving and sharing that is primary to the quality of life. To assure that philanthropy merits the respect and trust of the general public, and that donors and prospective donors can have full confidence in the not-for-profit organizations and causes that they are asked to support, we declare that all donors have these rights:

33. Donor Bill of Rights

I. To be informed of the organization's mission, of the way the organization intends to use donated resources, and of its capacity to use donations effectively for their intended purposes.

34. Donor Bill of Rights

II. To be informed of the identity of those serving on the organization's governing board, and to expect the board to exercise prudent judgment in its stewardship responsibilities.

35. Donor Bill of Rights

III. To have access to the organization's most recent financial statements.

36. Donor Bill of Rights

IV. To be assured their gifts will be used for the purposes for which they were given.

37. Donor Bill of Rights

V. To receive appropriate acknowledgment and recognition.

38. Donor Bill of Rights

VI. To be assured that information about their donation is handled with respect and with confidentiality to the extent provided by law.

39. Donor Bill of Rights

VII. To expect that all relationships with individuals representing organizations of interest to the donor will be professional in nature.

40. Donor Bill of Rights

VIII. To be informed whether those seeking donations are volunteers, employees of the organization or hired solicitors.

41. Donor Bill of Rights

IX. To have the opportunity for their names to be deleted from mailing lists that an organization may intend to share.

42. Donor Bill of Rights

X. To feel free to ask questions when making a donation and to receive prompt, truthful and forthright answers.

43. MAKE YOUR CASE FOR SUPPORT 44. Case Statement

1. Identify the important problems or needsthat the organization intends to addresswith the help of the contributions

2. Demonstrate the organizations ability toaddress these needs.

3. Match the proposed areas oforganizational activity with the fundersown philanthropic interests.

45. Case Statements

Describe the organizations mission in terms of human and social issues

• Organizations objectives

• Strategies

• Staff, budget and other needs to carry out your plan

• Who will ultimately benefit

• Case for support Why should someone support you

• Stresses strengthen emphasize the positive

46. Case Statements

What is distinctive about your organization?

What is your primary reason for being?

What are your core values?

What are your key words?

What is your passion?

47. Writing for Fundraising

In describing your work, be clear, not clever.

• We produce the Edible Arts Festival of Food and Art each June

• Eat Your Art Out

48. Making Things Happen

______ was created because

______ exists now because

______ will flourish in the future because

49. Think Like The Funder

On Grant Applications, answer the questions asked All parts!

• Describe yourboard of directorsand theirkey responsibilities . Describe yourrotation policyand how new members arerecruited and trained.

50. Dont Be Glib

Dont make meaningless Statements or assumptions

• As everyone knows, there are many types of art.

• Like all non-profits organizations we want to do more but require funding to add programs.

51. Use Achievements

Describe your current status in terms of achievements.

• Think like a winner

• Sing your praises

• Describe your success

52. Write Smart

Let the writing ripen

Find an ignorant reader

Edit, Edit, Edit!

Remember that writing alone wont get the funding you and your organization will.

53. THE PLAN 54. Fundraising Plan

Organizational Profile and Audit

• Mission, Vision, and Values

• Programs of activity

• Current fundraising activities

• • Board and staff resources?

• • Case for support?

• • Financial condition?

• • Success to date?

55. Fundraising Plan

Needs Assessment

• Establish need levels for programs

• Giving potential of current donor base

• Potential for attracting new donors

• Capabilities for carrying out plan

56. Fundraising Plan

Plan Development

• Establish overall and specific objectives

• Update or write Case for Support

• Design campaign strategies per program needs

• Resources

• • Data gathering system

• • People training system and support staff

• • Budget

• • Timeline

57. Fundraising Plan

Implementation

• Individual giving programs

• • Annual gifts

• • Special events (galas, benefits, auctions)

• • Major gifts

• • Planned giving

• Corporate giving program

• Foundation giving programs

• Grants Federal, state, local

58. Fundraising Plan

Processing and Evaluation

• Monitor giving

• Acknowledgements

• Adjust objectives and strategies as needed

• Assess outcomes and adjust as required

• Adjust data gathering system

59. Next Class

In depth types of funders

Specifics about individual giving

Fundraising plan basics