Fund Development
Kathy Keeley
Northland Foundation
Agenda
 What has changed?
 Types of Fundraising: Definitions
 The Fund Development Plan
 Key Lessons and Tips
10/19/2010
The Keeley Group - Northland Foundation
2
Fund Development
 Process and Rules Have Changed
 Prospecting and Asking Today - Demographic
 Technology
 Competitive Environment
10/19/2010
The Keeley Group - Northland Foundation
3
Fund Development
 Integrated
 Marketing and Communication Support
 Planned – Focused – Targeted
 Building long term relationships
 Research and Return
10/19/2010
The Keeley Group - Northland Foundation
4
Types of Fundraising
• Individual Giving
• Major Donors
• Events – Both large and small.
• Direct Mail
• Telemarketing
• Online and E-Giving
• Grants– Foundations, Corporate, Government
• Corporate Giving Programs
• United Way Fundraising
• Minor Donor Groups – Yes, they do exist!
• Participatory Fundraising– Like walk-a-thons and chili cook-offs
• Annual Giving and Multi-Year Giving Campaign
10/19/2010
The Keeley Group - Northland Foundation
5
Types of Fundraising
 Events
 Signature
 Smaller
 Cause Related
 Foundations
 Small Business and Corporations
 Individuals
 Membership
 Appeals and Campaigns
 Major Gifts
10/19/2010
The Keeley Group - Northland Foundation
6
5 Steps of Fund Development
1. Plan
2. Target
3. Ask
4. Close
5. Appreciate
10/19/2010
The Keeley Group - Northland Foundation
7
Sounds Simple! Maybe!
10/19/2010
The Keeley Group - Northland Foundation
8
The Plan
10/19/2010
The Keeley Group - Northland Foundation
9
10/19/2010
The Keeley Group - Northland Foundation
10
Fund Development Plan
 How are you going to fundraise?
 More than brainstorming session or list of activities?
 Starts with clear goals and expectations
 Dollar Goals – more than Plug Your Budget
 Clear Expectations – Board, Staff and Volunteer Roles
 Timelines and Calendar
10/19/2010
The Keeley Group - Northland Foundation
11
Outline for The Plan
Sheet One
 Categories
 Dollar Goal
 Actual last year
 Year To Date
10/19/2010
Sheet Two
 Activity
 Tasks
 Timeline
 Responsibility
 Goal
The Keeley Group - Northland Foundation
12
Fundraising Plan Sheet One
Goal
Events
1st Quarter
2nd Quarter
3rd Quarter
4,200
Total
$
difference
$
17,500
Large Event
$
10,000
Small Event 1
$
1,500
$
1,000
$
1,000
Small Event 2
$
2,500
$
2,000
$
2,000
Small Event 3
$
2,500
$
1,200
$
1,200
Small Event 4
$
1,000
$
24,000
$
19,000
$
19,000
Individuals
$
10,000
$
11,000
$
11,000
Churches
$
5,000
$
1,900
$
1,900
Board
$
3,000
$
2,600
$
2,600
Small Business
$
4,000
$
3,500
$
3,500
Grants (Proposals)
$
60,000
$
29,000
$
29,000
Contributions (Letters)
$
4th Quarter
$
$
4,200
-
-
Foundation
$
-
Corporate
$
-
Other
$
-
$
-
Total
10/19/2010
$
101,500
The Keeley Group - Northland Foundation
$ 13,300
$
5,000
$ 31,000
$ 49,300
To be raised
13
Fundraising Plan – Sheet One
Goal
Events
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total
$
17,500
$
-
Large Event
$
10,000
$
-
Small Event 1
$
1,500
$
-
Small Event 2
$
2,500
$
-
Small Event 3
$
2,500
$
-
Small Event 4
$
1,000
$
-
$
24,000
$
-
Individuals
$
10,000
$
-
Churches
$
5,000
$
-
Board
$
3,000
$
-
Small Business
$
4,000
$
-
Grants (Proposals)
$
60,000
$
-
Foundation
$
-
Corporate
$
-
Other
$
-
$
-
Contributions (Letters)
Total
10/19/2010
$
101,500
The Keeley Group - Northland Foundation
14
Board Solicitation – Sheet Two
Goal
Activity
Tasks
Timeline
Responsibility
Raise $ 5000 from
Board Members
Board members
expected to contribute
personally to
organization
Board Meeting To
Review
Jan
Chair
Pledge Letter Sent
Jan
Staff
Chair and Vice Chair
follow up with members
Feb – Mar
Chair and Vice Chair
Update at Board
Meeting
April, July, Sept
Chair, Finance
Aug
ED
Draft Letter
Sept
ED
Create list of names
Sept
Board, Dev Committee
Board Letter Signing
Meeting
Oct
Board
Reporting
Nov and Dec
Finance
Follow-up Calls
Dec
Board
Board Members raise
Board members
$15,000 from solicitation generate 20 names
of friends
each in order to raise
funds and add names to
general appeal list
10/19/2010
Cost/Budget
Board Training
The Keeley Group - Northland Foundation
15
Corporate Plan – Sheet Two
Corporation
Goal
2010
2011
Due Date
Request
Target
5000
5000
7500
June, 1
Education
Materials
for
Classroom
General Mills
$15000
0
$12,500
May 1
Parent
Training
Sessions
SMDC
$4000
$2000
$4000
Oct 1
GO
10/19/2010
The Keeley Group - Northland Foundation
16
Who are you asking and
for What Dollar Amount
10/19/2010
The Keeley Group - Northland Foundation
17
Targeting
 List Development
 Prospecting
 Funding Research
 Dollar Amount (Too Little or Too Much)
 Appeal/Request
10/19/2010
The Keeley Group - Northland Foundation
18
Targeting
 Brainstorm
 Circle of Influence
 Building the Master List
 The Real List
 Connections and Introductions
10/19/2010
The Keeley Group - Northland Foundation
19
Targeting
 Individuals
 Prospecting
 Appeal Letter – general vs. targeted
 Additional Requests
 Corporations
 Research
 Name
 Match to Business Interests
 Foundations –create relationship
 Introduction – call and meeting
 Newsletter
 Updates and Information
10/19/2010
The Keeley Group - Northland Foundation
20
Planned
Giving,
Bequests
Major Gifts
Individual Donors
Event, Occasional Gifts
10/19/2010
The Keeley Group - Northland Foundation
21
Donors to Investors
Contributions to Investments
10/19/2010
The Keeley Group - Northland Foundation
22
Targeting Individuals
 Formal Prospecting
 Informal Prospecting
 Who fits the ideal profile?
 Who are involved in priorities, programs and projects
now? 3-10-20 Lists
 Build the pyramid from top down
 Organize list by capacity and relationship
 97/3 Rule
10/19/2010
The Keeley Group - Northland Foundation
23
How To ASK!
10/19/2010
The Keeley Group - Northland Foundation
24
The Ask
 Be Prepared To Answer
 Where does the money go ?
 Why is it going there?
 Who decided that and how did they do it?
 What do you want from me and when do you want it?
10/19/2010
The Keeley Group - Northland Foundation
25
The ASK
 Simplify the Message
 Use Powerful Stories
 Say Dollar Amount
 Create Engagement Tool
 The DECK
 Pictures and Stories
10/19/2010
The Keeley Group - Northland Foundation
26
The Ask
 Practice
 Set A Goal
 Take Board Leadership
 Make 5 Presentations Per Month
10/19/2010
The Keeley Group - Northland Foundation
27
10/19/2010
The Keeley Group - Northland Foundation
28
Get Over It!
10/19/2010
You Are In Sales
The Keeley Group - Northland Foundation
29
The Close
 Listen
 Ask them Questions
 Let Them Ask Questions
 Respond to What you Hear not What you Want to Hear
 Engage
 Use Dollar Amount
 Be Prepared to Take a NO
 Follow-up
10/19/2010
The Keeley Group - Northland Foundation
30
Relationships and Communication
10/19/2010
The Keeley Group - Northland Foundation
31
Celebration
 Thank you Letter
 Cards – Holiday
 Event – Discount and Tickets
 Communication
 Newsletter – Email Blast
 Quarterly Updates
 Marketing and Public Relations
10/19/2010
The Keeley Group - Northland Foundation
32
10/19/2010
The Keeley Group - Northland Foundation
33
The Web
 60% of donors do research online
 Online donations – going up but small % of total
giving (10%) – growing each year
 Email and direct mail have some influence (27% and
28%)
 74% of nonprofit have Facebook presence (5391 size of
community)
 80% commit ¼ of staff person
 Integrate into fundraising from individuals
10/19/2010
The Keeley Group - Northland Foundation
34
The Web
 Tips
 Well branded, easy to use web site
 Email tool that meets federal laws on spam
 Send out email and direct mail request few days before
and after

Include online giving option in direct mail
 Use Web analytics (google analytics)
 Social media strategy

Build it and they will come does not work
 Community vs. brochure
10/19/2010
The Keeley Group - Northland Foundation
35
Online Giving
 Most online Giving
 End of Year
 Humanitarian Crisis
 Have to communicate urgency
 Set a reasonable goal
 Supporters reaching out – families and friends influence
 Focus on impact not the need
 Share stories
 Focus on constituent experience
 Engagement and involvement
 Be a “donor” once a quarter
10/19/2010
The Keeley Group - Northland Foundation
36
10/19/2010
The Keeley Group - Northland Foundation
37
Staffing
 Development Staff
 Grant writer and Reporting
 Events
 Individual Solicitation
 Major Gifts
 Clearly Define the Job, Expectations, Goals, Timeline
10/19/2010
The Keeley Group - Northland Foundation
38
Costs
 Cost (1/3 of amount raised)
 Amount
 Time (Between idea and receipt of $)
 Effort
10/19/2010
The Keeley Group - Northland Foundation
39
Tips
 Build A Team – Takes Time
 Build Relationships
 Listening
 Communication –ongoing
 Engage
 It Takes Time – 3- 5 years
10/19/2010
The Keeley Group - Northland Foundation
40
Tips
 The Rule of 3
 Avoid Cold Calls
 Do Your Math – how much per client, per service,
per outcome
 Rule of Thumb: Expect to spend 1/3 of your
nonprofit expenses on fundraising
10/19/2010
The Keeley Group - Northland Foundation
41
Brainstorming Is Not Planning
10/19/2010
The Keeley Group - Northland Foundation
42
Earned Income
 Fees
 Selling Product or Service
 Process
 Feasibility Study



10/19/2010
Target Market
Can you make money?
What does it take to start?
The Keeley Group - Northland Foundation
43
Business Plan
 Business Plan






10/19/2010
Description Product/Services
Target Market
Competitive Analysis
Marketing Strategies
Management
Financial Projections
The Keeley Group - Northland Foundation
44
Resources
 http://www.supportingadvancement.com/revenue/sa
mples/samples.htm
 www.networkforgood.org
 www.managementhelp.org
10/19/2010
The Keeley Group - Northland Foundation
45