Ideas That Might Work

An Honest Discussion about Fund

Development
 Disclosure
Fund Development Credentials
• OJT

• Made mistakes

• Had some help

• Work in progress
Region 5 Needs Assessment
Directors Identified A Top Concern:

Fund Development

how to sustain the organization and operations

 Not all money is the same
Money with strings attached….

Restricted

Donor Restricted

Unrestricted
 Parent Center Characteristics

• No Development Director, or not a paid position

• ED with limited knowledge/experience in fund
development
• Competitive environment
• Boards of Directors:
– Program boards with limited nonprofit governance
experience
– Lack knowledge of nonprofit financial management
and fund development
 Parent Center Characteristics
Sometimes….
• One person trying to do it all

• Executive Director understands the

importance of fund development:

“Just show me an example of what one

center has been able to do”.
 Learning Objectives
(Take- away)

• Boost confidence, improve knowledge,

and provide encouragement

• One idea that might work

• Improve communication with your Board

and staff
 Hot Topics and Burning
Questions
Issues Identification:

What would the short list of your top

concerns look like?
 What are the basics?
Fund Development is a strategy …..
part of creating a financially healthy organization
• Evaluate the Board’s priorities
• Assess your capacity
• Know when and where to seek help
• “Learn by doing” but evaluate results
• Commit to a long-term process
Fund Development is financial strategy
You are doing fund development:
• Use resources wisely
• Careful budgeting and financial management
• Successful grant proposals

What else? Evaluate financial condition

• Secure financial condition, balanced budget
• Access to cash in emergencies (line of credit)
• Annual audit with no findings
• Diversify funding
• Capacity in fund development
• Cash reserve > 30% of annual budget
 Evaluate Board’s Priorities
Why were you hired?
• Are fund development duties explicit or implied?
• Does job description include substantial detail about fund
development responsibilities? (explicit)
• Is the board setting fund-raising goals for you to achieve
as part of your annual review? (explicit)
• Does your performance evaluation include a
measurement of your fund development outcomes?
(explicit)
• Question: If yes, how is this supported? (no grants)
 Are you ready?
Evaluating the organization’s capacity
Key Questions:

• What is our most pressing need?

If a donor wanted to write a check, how would you describe your
most pressing need?

• How do we describe that need in terms of our

mission to serve families?
• Who is most likely to want to meet that need?
• How do we provide compelling evidence that we
effectively meet the needs of families?
 Are you ready?
• How often do we communicate our message
(meeting the needs of families) to donors and potential
donors?

• What form does that communication take?

• What other methods will increase communication and
contact with donors and potential donors?
• What kind of infrastructure and support is needed for
donor contact and relationship building?
• KEY: Does your Board budget their annual giving as
revenue for the organization?
 Learn by doing
IDEAS: “That might work”
Intentional AND Opportunistic
Annual Mailing Campaign ($10-20,000)

• Staff and volunteer project

• Had been tried without success

Prize Drawing – Silent Auction ($22,000)

SWA Sea World vacation pkg. for 4 (air travel, hotel, rental car)
• $20 dollar ticket for Prize Drawing, Silent Auction and Reception
• Relationships – Former Board President, Current BOD President,
Advisory Council Member with Southwest Airlines
 Learn by doing
IDEAS:
Law Firm ($30,000)
• Relationships – Board member
parent/ partner in firm

Arizona Business Bank: Biz Bash ($235,000)

• Relationships – Member of Advisory Council

Dandelion Golf Classic ($80,000)

• Relationships – Arizona Business Bank: Biz Bash
 Learn by doing
Other examples:

• Individual Donors
Relationships – Donor cultivation
number of contacts
personal calls, letters, and updates

• United Way

• State Tax Credit

 Evaluate: What works
• Results – what was achieved?
• Monitor progress
• Discuss results

IDEAS: “That Didn’t Work”

Drive a Thon ($ 1,800)
Baseball Ticket Sales ($ 1,475)
Common Characteristics:
Small return for time invested
Working hard for someone else
 Development: Long Term
KEY POINTS

1. Board President and Executive Director

• Share a common goal and commitment
• Good relationship: Work well together
• ED/President demonstrate leadership and
provide direction to staff and Board
• Identify what is needed and ask for it
 Development: Long Term
2. Relationship Management:
Can’t do it alone
• It’s about mission and relationships -
everyone’s responsibility
• Start with your Board of Directors
• Develop awareness of your organization
• Name, materials, communication pieces
 Development: Long Term

3. Board Development

• Continuing agenda item at meetings

• Bring in expertise for board education

• New Board member orientation

• Advisory Council - an option?

 Development: Long Term
4. Set Goals

• Identify fund raising goal in the annual budget

• Start small: develop an idea and design a plan

• Create conditions for success – build

confidence
Know when to ask or seek help

Capacity building grant

Fund Development Consultant

Conferences and professional opportunities

Contact foundation or charitable trust

 One Story
Once upon a time….

• Six figure deficit

• No infrastructure support

• Lack of goals, direction,

and leadership

• Board with no development experience

Sometimes there’s a happy ending…
• Unrestricted revenue increased
• Cash reserve > 30% of annual budget
• Board sets annual fund raising goal
• Board includes their personal giving as annual
revenue in the budget
• Some individual donors make large contributions
• Some business partnerships created
 Conclusion
Successful Fund Development:
• Leadership at the executive level
• Build relationships: long-term process
• Take advantage of opportunities, but create
some, too.
• Analyze efforts and results
• Know when and where to seek help
 Resources

• GiftWorks info@missionresearch.com Donor database for fund

development. Training on the software is critical. About $400 year for the
license, includes 24 hr phone support, and 5 workshops. Can be
customized; tracks relationships

• Board Café: Archives

http://www.compasspoint.org/boardcafe/archives.php

• The Handbook of Nonprofit Governance, BoardSource,

Jossey- Bass (2010)

• Development strategies: www.Benevon.com See if it looks

interesting. Includes a short video worth watching. They offer training, too.

• Questions: Joyce Millard Hoie, joycem@raisingspecialkids.org

(602) 242-4366
Hot Topics and Burning Questions

Review List

Other Questions?
See you at the beach…