Presented by:
Larry Smith
LEAF LLC
[email protected]



To learn together
To be dialogical rather than monological
To be dynamic rather than didactic




Identifying and analyzing some of the challenges
that YMCAs and other nonprofits face;
Sharing our collective experiences;
Sharing practical tools for enhancing our respective
vineyards; and
Trying to hear God’s voice in His desire to “renew
our strength”.



How to build a multi-million dollar nonprofit;
Learning “business” skills (e.g., John C. Maxwell on
“business ethics”); and
Engaging in “Bible Study” or discussing “Leadership
Lessons from Jesus”.
THE Model Mission Statement:
“When they had finished breakfast, Jesus said to Simon Peter,
‘Simon, son of John, do you love me more than these?’ He said
to him, ‘Yes, Lord; you know that I love You.’ He said to him,
‘Feed my lambs.’ A second time He said to him, ‘Simon, son
of John, do you love me?’ He said to him, ‘Yes, Lord; you know
that I love you.’ He said to him, ‘Tend my sheep.’ He said to
him the third time, ‘Simon, son of John, do you love me?’ Peter
was grieved because he said to him the third time, ‘Do you love
me?’ And he said to him, ‘Lord, You know everything; You
know that I love you.’ Jesus said to him, ‘Feed my sheep.’ “
John 21:15-17 (RSV)
“We’re on a mission from God!”
“CAPACITY BUILDING”
“Nonprofits have an obligation to seek new and even more effective ways
of making tangible progress towards their missions, and this requires
building organizational capacity. All too many nonprofits, however,
focus on creating new programs and keeping administrative costs low
instead of building the organizational capacity necessary to achieve their
aspirations effectively and efficiently…This must change: both nonprofit
managers and those that fund them must recognize that excellence in
programmatic innovation and implementation are insufficient for
nonprofits to achieve lasting results. Great programs need great
organizations behind them.”
Effective Capacity Building in Nonprofit Organizations
(2001 Report for Venture Philanthropy Partners by McKinsey & Company)
“From Rusticus I received the impression that my character
required improvement and discipline; and from him I learned not
to be led astray to sophistic emulation, nor to writing on
speculative matters, nor to delivering little hortatory orations,
nor to showing myself off as a man who practices much discipline,
or does benevolent acts in order to make a display … and with
respect to those who have offended me by words, or done me
wrong, to be easily disposed to be pacified and reconciled, as soon
as they have shown a readiness to be reconciled; and to read
carefully, and not to be satisfied with a superficial understanding of a
book; nor hastily to give my assent to those who talk overmuch...”
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Pray more than you currently do;
Take so-called “business” courses (perhaps at a local
community college);
Model the example of work-life balance;
Carefully walk the tightrope of being responsive to
members’ needs without allowing them to set the
agenda;
Get serious about creating boards and leadership teams
that are models of multi-racial, multi-cultural, and
multi-class success; and
Mentor promising young leaders.
1) Clarifying Mission/Vision
2) Resolving Key Issues
3) Developing the CEO/Exec Dir
4) Developing Financial Resources
Define
Mission &
5) Accessing Policymakers
Set Direction
6) Enhancing Reputation
in our community
Monitor &
Ensure
Improve
Leadership
Performance
& Resources
7) Overseeing Financial Performance and Risk Mgmt
8) Assessing Performance Against Mission
9) Improving Board Performance
Framework placed in the public domain by
McKinsey and Company in 2004


Purpose: To assist you in defining next steps to
enhance board and organization performance
Goals:
100% Response Rate
• Focus on Key Areas of Board Responsibility
•

Key Measures:
•
•
•

Current (collective) Board Performance
Current (individual) Board Member Energy & Engagement
Near-Term Key Areas to Address
Explore board size, structure, and operations

Member Energy and Engagement
•
•
•

Understanding of mission
Advocacy in the community
Sacrificial giving
Key Performance Areas
Strong reputation in community
• Strong financial stewardship
• Fund development commensurate with needs
• Strong Board/Executive Director Relationship
• Operational excellence (e.g., Six Sigma)
•

Strategic Areas to Explore
Size of Board (Sometimes, “less is more”)
• Committee structure and purposes
•

Other Areas to Explore
•
•
•
•
•
Processes for recruiting new board members
Process for developing new leaders
Work-Life Balance
Expectations of board members regarding preparation and
participation in board and committee meetings
Clarity regarding who should be leading and how.
Rarely
Often
I Get Excited About the Mission and Vision
I Look for News, Trends That Impact Our Organization
I Thoughtfully Prepare for Board and Committee Meetings
I Actively Participate in Board and Committee Work
I Act as Ambassador and Tell People About Our Work
I Recommend People for the Board and Committees
I Assist With Fund Raising Efforts
I Make A Sacrificial Annual Financial Contribution
I Truly Enjoy Serving on This Board
Almost
Always
Performance
Leadership &
Resources
Mission
Below
Expectations
Clarifying Mission and/or Vision
Resolving Key Strategic and Policy Issues
Developing the Exec Dir/CEO
Developing Financial Resources
Accessing Policy Makers
Enhancing Reputation
Overseeing Financial/Risk Mgmt
Assessing Performance Against Mission
Improving Board Performance
Meeting
Expectations
Exceeding
Expectations
Performance
Leadership &
Resources
Mission
Currently not
a Priority
Clarifying Mission and/or Vision
Resolving Key Strategic and Policy Issues
Developing the Exec Dir/CEO
Developing Financial Resources
Accessing Policy Makers
Enhancing Reputation
Overseeing Financial/Risk Mgmt
Assessing Performance Against Mission
Improving Board Performance
Important,
not Urgent
Important &
Urgent
Strongly
Disagree
Somewhat Somewhat
Disagree
Agree
Board Size is Appropriate
Appropriate Committees with Clear Charters
Board Composition is Appropriate
Process for Recruiting, Training, Retaining
Positive Exec Dir/CEO and Board Working Relationship
Effective Leaders as Board and Committee Chairs
Effective Process for Developing/Selecting New Leaders
Bd Calendars, Agendas, and Advance Materials Support Bd Work
Board and Committee Meetings Run Well
Bd Strikes Balance of Work and Fun, Connects Bd to Mission
Strongly
Agree
Increase Efforts
Build on These Strengths
ED
Critical
ED
Clarifying Mission
IMPORTANCE
Resolving
Key Issues
Key
B
B=Board
B
Moderate
ED=Exec Dir
MAINTAIN or DECREASE EFFORTS
Poor
PERFORMANCE
Excellent
Increase Efforts
Critical
Build on These Strengths
ED
IMPORTANCE
Developing Financial
B
Resources
Enhancing Reputation
B
B
Accessing
B
Policymakers
Developing the CEO
ED
ED
Key
B=Board
ED=Executive Dir
Moderate
MAINTAIN or DECREASE EFFORTS
Poor
PERFORMANCE
Excellent
IMPORTANCE
Critical
Increase Efforts
ED
Improving
Board
Performance
B
Build on These Strengths
ED
ED
Assessing Org
Performance
Financial &
Risk Mgmt
B
B
Key
B=Board
ED=Executive Dir
Moderate
MAINTAIN or DECREASE EFFORTS
Poor
PERFORMANCE
Excellent
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Is your board’s work substantive and strategic?
Is it meaningful, both for your organization and
for the individual board member?
What has been the board’s role? What does it
need to be?
What are the critical issues facing your
organization?

What is the consequence of a “critical issues”
focus for your board work?
•
On board agendas?
• On board committee structures?
• On board and staff, particularly executive director
relations?
• On information and learning needs?
• On the board’s relation to stakeholders?
Finally, if the board’s work is important, how is
board effectiveness measured?
$22.83
(8%)
$15.29
(5%)
$41.00
(14%)
$211.77
(73%)
Source: Giving USA 2011
Individuals
Foundations
Bequests
Corporations
Foundations
Environment
Internationaland animals Individuals
$33.00
Arts, culture, affairs
$4.20
11%
$6.66
and humanities $15.77
2%
2%
$13.28
5%
Public-society 5%
benefit
$24.24
8%
Religion
Health
$100.63
Education
$22.83
35%
$41.67
8%
14%
Human
services
$26.49
9%
The IU Center on Philanthropy/GIVING
USA
Unallocated
giving
$2.12
1%
“The World’s Most Famous (or Infamous) College Dropout”

Median incomes
Asian households = $75,027
• Non-Hispanic white households = $62,545
• Hispanic households = $39,730
• African-American households = $38,409
•
Source: U.S. Census Bureau - 2010
31

Most studies find that whites volunteer more than blacks and
Latinos (Bryant et al., 2003; Cannon et al., 1988; Gallagher, 1994)

Several studies have found that racial differences disappear after
controlling for education, income, and occupational status (Clary,
Snyder & Stukas, 1996; Latting, 1990; Woodard, 1987).

Race and giving and volunteering from a human capital
perspective and social and cultural perspective (Musick, Wilson &
Bynum, 2000; Wilson, 2000).
Source: Rooney & Mesch

Average levels of giving by whites is 41% more than
people of color ($1,572 vs. $1,114).

However, after controlling for income, education, etc.,
differences in giving by race go away. Differences are
income and education differences, not racial
differences.

Significant racial and gender differences in response to
different survey methods.
Source: Rooney & Mesch

Race does not matter after controlling for income,
education, etc. That is, there is no statistically
significant difference in giving between whites and
minorities.

Income and education matter a lot.

Methodology is destiny.
Source: Rooney & Mesch
SO WHAT??
The Team
The Process
Donors
Must have
Mission
Cultivation
Linkage
Boards
Solicitation
Ability
Staff
Stewardship
Interest
Team:
Breaks at
weakest spot
Process:
Fails unless
understood
TFRS © 2008
LFR, Part 4 Chapter 13 - 36


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Fundraising is a board priority and is
understood as a responsibility of each board
member
Board members understand the mission
Board members have overcome the fear of
solicitation
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Governing boards
Development committee and various
subcommittees
Advisory boards
“Friends of…” groups

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Consider different tasks for board members
– asking is only one task
Develop strategies to get reluctant board
members involved in fundraising
Require board giving (though not
necessarily a specific amount)
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Recruit board members strategically; set
expectations beforehand
Involve board in setting goals and selecting
projects
Involve board members in suitable ways
Create strategy for helping reluctant board
members
Ensure that board members are donors
Cultivate “ownership” in the organization
How many of the following fundraising activities has each
board member undertaken in the last year?
 Contact five to ten prospects personally by
telephone.
 Send a letter to prospects in your community.
 Call donors to thank them for their gifts.
 Drop a personal note to lapsed donors.
 Make “thank you” calls and/or sign “thank you”
letters
 Review and evaluate prospect lists
 Orient new board members
 Assist in reviewing “The Case”
TFRS © 2008
LFR, Part 4 Chapter 13 - 41
Donate to the best of their ability.
 Identify and recruit future board members.
 Speak frequently about your organization and its
programs and purpose.
 Accompany staff on solicitation/cultivation visits.
 Provide names and addresses for direct mail
campaigns.
 Identify potential corporate donors.

TFRS © 2008
LFR, Part 4 Chapter 13 - 42



Give,
Get, or…
Get off
SHOW ME THE MONEY!!
FUND DEVELOPMENT:
AN OVERVIEW

Linkage


Ability



Is there any type of relationship with the (potential) donor
- even a tenuous one?
Particularly important when asking for major gifts. But…
Everyone has some capacity to give.
Interest

Why should I give to this institution?

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Tell your story honestly and positively. Let your donors and prospects
know the power of their gifts and what they can accomplish. Avoid a
desperate recitation of all the “terrible things” that will happen if they
don’t give.
Stay in touch with your donors. Investigate inexpensive ways to
communicate. Show, and tell, that your organization knows that belts
are tightening everywhere, and you are doing your part. Step up public
awareness campaigns using social media tools such as blogs, Facebook,
and Twitter.
Say thank you. Say it again. Invest a few minutes and 44 cents in a
hand-written note.
Drop your donor a brief e-mail. Better yet, pick up the phone for an
even more personal touch. Make it a conversation about the donor’s
interests. Not every contact should be a solicitation.

Engage your board in very practical ways. Make sure that they
understand their role in the fundraising process for your organization and
are committed to it. Have them make some of those thank you calls.

Keep a positive attitude about your mission, vision and purpose. If you
haven’t reviewed those in a while, maybe it’s time for a refresher so you
can recharge your batteries and maintain your role as a key contributor to
your organization’s success.

Use the practical tips and advice throughout this Giving USA report as
touchstones of how to raise philanthropic dollars. And don’t just read the
section that pertains to your sector. Between these covers, you will find a
wealth of sound ideas to help you move your fundraising programs
forward successfully.

Take this opportunity to look at budgets, staffing, resources, mission and
vision in fresh ways that can help propel you forward at a nominal cost
compared to “business as usual.”
 Personal relationship with solicitor
 Personal involvement with the Y
 Sense of duty or responsibility
 Being a part of something larger than themselves
 It’s a habit
 Not out of guilt
 Not because the Y has “needs”
What are five reasons that donors should make
gifts to YOUR Y?
A longer, more thoughtful cultivation period is essential for
success in major gifts fundraising. Cultivation is a series of
steps, or moves, which are:

Donor-Centered – so you focus on gathering more than
sharing information

Planned – part of an overall strategy

Purposeful – begin with the end in mind. Always know the
desired outcome of each step.


Review your strategic plan
• Ensure that fund development strategy is a core
component of the plan
Two ways to improve bottom line: 1) increase revenue, 2)
reduce expenses
• “Business practices”??
• Increase and diversify donor base
• Over-reliance on one donor – or one type of donor – can
be very costly!
• Upgrade donors
• Consider fee-for-service
The IU Center on Philanthropy





Focus on cultivating major gifts and planned gifts
Look for partnership opportunities (e.g., to leverage
economies of scale)
Consider small donors (e.g., President Obama)
Consider creating an endowment
As applicable, employ Good to Great principles
The Heart Not the Head: Why People Give
1. Someone I know asked me to give
2. I felt emotionally moved by a story
3. I want to feel I'm not powerless in the face of need
4. I want to change someone's life
5. I feel a sense of closeness to a group
Remember the Three NOTs

You are NOT a beggar

You might NOT receive a major gift pledge during meeting
#1

Do NOT take a refusal personally
Get Ready

Who . . . pursue prospects who have the greatest potential.

Where . . . do you meet?

What . . . determine increased gift request amounts in
advance

When . . .set an appointment.
Get Set

Make your own commitment

Know the basics:
• Case statement
• Any background information or giving history
• Review ask amounts for each prospect

Consider your presentation
1. Why do you need the money for which you will be asking?
2. What will be accomplished if you are successful?
3. What will happen if you aren’t successful?
It’s a hard-knock life!

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Be aware of national trends (e.g., increase in funding for
operations, Greenlining Institute and NCRP)
Know what’s going on in your community
Jobs
• Corporate giving
• Local government grants
• Foundation giving
•
•
Review (or create) your case statement. Ensure that it is
timely and relevant.
The IU Center on Philanthropy

Review your financial situation
Develop a strategy for increasing revenues (not just grants)
• Develop a strategy for decreasing expenditures
•

Reconsider “special events”
•

How can you create positive cash flow?
Upgrade your skills
Join the AFP
• Take courses at The Fund Raising School
•
Expand your network
Review your public relations plan


•
Show impact of gifts (stewardship)
Tell stories (empathy)
Present opportunity or responsibility to “help those with less” (duty)
•
•

Research, Research, Research!
Devour the Chronicle of Philanthropy, Nonprofit Times, Giving
USA, The Wall Street Journal, etc.
• What’s the fastest growing source of charitable giving??
•

Reconsider individuals.
•
•
•

Maintain connections with institutional funders but do not expect “bail
out” from foundations or corporations.
Research shows working and married women are very likely to decide
household donations. Engage and cultivate women.
Some research shows two “types” of donors – those moved by
empathy and those moved by duty. Appeal to both!
Arrange for commitments of frequent small donations: EFT
or credit card authorization.


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Promote your organization as a way for people to
‘exchange’ holiday gifts: Big Sisters had some success
years ago with “Honor Mothers” for Mother’s Day.
Your donors want to give. It’s your job to show them
how!
Engage volunteers
This phase should take approximately five minutes.

Ask open-ended questions

Observe the prospect’s interests

Discuss his/her relationship with the organization

Share your passion for the organization
This phase should take approximately 20 minutes.

Explain in simple terms what their last gift accomplished

Don’t sell programs or “things”. People give from
emotion and a sense of shared values

Relate benefits based on what the donor has said is
important to THEM.
This phase should take approximately five minutes.

Paraphrase the prospect’s words:
• “You said earlier you believe in . . .”
• “This seems to interest you the most because . . .”

Ask for a specific increased amount

Listen, don’t talk

Get prospect to say “yes” to something (anything!)

Recap, Recap, Recap
Objections simply mean the prospect is weighing seriously the
possibility of giving.
 Acknowledge the objection
 Don’t take offense or try to “defend” the “it”
 Don’t argue – probe for detail

They are objecting to:
•
•
•
•
•
•
Mission or vision
Don’t share your values
Don’t believe in the
leadership or plan
Wrong project or purpose
Amount
Timing
*Jerry Panas
© National 4H Council & The Osborne
Group, Inc.
69
WHAT’S YOUR ELEVATOR SPEECH??
“You have not because you ask not!”
Without follow-up, all is lost

•
•
•

•
•

•
•
They say YES
Say thank you
Get pledge form
Write acknowledgement note
They say NO
Permanent or temporary?
Consider other giving options?
They cannot decide
Always set follow-up time
Involve others as necessary
• Identification
• Qualification
• Develop strategy & timetable
• Cultivation
• Solicitation and negotiation
• Acknowledgment & follow-up
• Stewardship
• Renewal
Stewardship is the guiding principle in philanthropic fundraising.
It is defined as the philosophy and means by which an institution
exercises ethical accountability in the use of contributed resources
and the philosophy and means by which a donor exercises
responsibility in the voluntary use of resources.
A Gift Only Begins the Relationship

Share all information with organization

Encourage others with your success

Engage donors in organizational activities

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J.E. and L.E. Mabee Foundation
The Maclellan Foundation
Thomas H. Maren Foundation
The Ford Foundation
Lilly Endowment
The Pew Charitable Trusts
The Robert Wood Johnson Foundation
The Marin Community Foundation
The J. Bulow Campbell Foundation










F.M. Kirby Foundation
The Duke Endowment
The Meadows Foundation, Inc.
Prizker Foundation
John Templeton Foundation
The Lincy Foundation
Bradley-Turner Foundation
Jessie Ball duPont Fund
Connelly Foundation
Booth Ferris Foundation
“TECHNICAL STUFF”
Planned gift
Linkage
Big gift
Involvement
Major gift
Advocacy
Special gift
Upgraded donor
Repeat donor
Donor
Prospect
Linkage
Ability
Interest

Personal: face to face
• Team of two
• One person

Personal letter (on personal stationery)
• With telephone follow-up
• Without telephone follow-up

Personal telephone
• With letter follow-up
• Without letter follow-up
Planned
Gift Donor
Personal
contact only
Capital Donor
Personal contact only
Special/Major
Gift Donor
Personal contact/letter/
phone call
Renewed/Upgraded
Donor
Personal contact/letter/phone call
First
FirstTime
TimeDonor
Donor
Direct mail/telemarketing/fundraising
benefit/Internet/media/door-to-door
Universe of Prospects
•Identify prospects
•Determine relationship
•Determine capable gift
amount
•Engage volunteers
Identification
Cultivation
•Intentional process of
relationship building
•Engage prospect in
conversation
•Discover interests and
gain information
•Engage volunteers as
needed
•Share your Y story
•Don’t “sell” programs,
explain impact
•Make the ask
Solicitation
Stewardship
•Share how gift made a
difference
•Engage donor in
conversation
•Determine if another gift
is possible
High
Financial Capacity
Low
Low
Current Interest or Involvement
High
1.
2.
3.
4.
What is the current source of the majority of your
annual revenue?
Who might your organization be ignoring?
Who might need further cultivation/stewardship?
Are there other sources?
Donor
Source
Benefit
Current
Income
Ongoing
Programs/
Services
Annual
Fund
Income &
Assets
Special
Programs &
Projects
Unrestricted
Annual
Capital
Assets
Estate
Planning
Endowment,
Capital
Buildings,
Equipment,
Endowment
Major
Gifts
(Program)
Capital
Campaign
Planned
Giving
Provide
Stewardship
Identify
the Critical
Few
Say Thank
You
Learn &
Share Your
Vision
Ask for
Specific
Amount
Develop a
Relationshi
p
Prepare to
Ask
Engage &
Involve
© National 4H Council & The Osborne
Group, Inc.


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“Right” purpose
“Right” amount
“Right” solicitors
“Right” time



“Right” place
“Right” participants
“Right” materials




Motivation and values
Knowledge
Philanthropic decision
makers
Natural partners
Issues
Involvement and
contribution preferences
Stewardship
preferences
© National 4H Council & The Osborne
Group, Inc.


To mission, vision,
leadership,
project and
impact
BEFORE asking for
the specific
amount
“Coffee is for closers.”
© National 4H Council & The Osborne
Group, Inc.
1.
Definition of “the case”
2.
Reasons for developing the case
3.
Vision statement
The “case” is the expression of a cause. It articulates
all the reasons and justifications for supporting the
advancement of the cause. In other words, the case
validates your organization’s existence. Case and
cause are measured by degrees of relevance,
importance, and urgency. The statement is backed up
by materials and documents that give the statement
credibility. (Remember: Donors are less interested in
you reaching your fundraising goal than they are in
making a difference in people’s lives!)
1.
Development of a case statement should involve board, staff,
and volunteers. All should agree that the final product truly
articulates the case.
2.
Leadership for fundraising will be enlisted and encouraged by
having a role in developing the case. Enthusiasm will increase as all
internalize the case and learn to articulate it in their own ways.
3.
The case, drawn from case resources, should include all information
needed for various materials (case expressions) used in public relations
and fundraising.
4.
Though intended as an internal document, the case can be shared with
people whom the organization is cultivating for major involvement in
various campaigns and projects.
5.
A strong AF makes an urgent and compelling case.








Answers why your organization is worthy of support
Answers who you are/why you exist
Answers where have you been
Answers where you are going
Answers the difference that “arriving” will make
Answers what it will take to get “there”
Answers how gifts help you get “there”
IS CLEAR IN ALL YOUR MARKETING AND FUNDRAISING
MATERIALS!!
1.
2.
3.
4.
5.
Is part of the organizational planning
Development professional can be catalyst and facilitate the
process
Development professional often serves as a key interpreter of
external constituency’s concerns, needs, and perceptions
Board/Trustees and professional staff are involved in order to gain
their “ownership” (i.e., advocacy and full commitment)
Key volunteers, donors, and community leaders should be
involved in case validation. This will ensure that differing views
are identified and addressed. Such views could have a negative
impact on fundraising.





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Stated organizational mission and need
Documented community need
Proposed strategies and tasks to alleviate need
Identified beneficiaries
Demonstrated organizational competency
Required resources to achieve mission
Statement of how gifts can be made
Benefits (to donor) of making a gift
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Direct mail pieces
Brochures
Proposals
Speeches
Newsletters
News articles
Websites
Telephone solicitation script
Prospectus for personal contact
Other?
1.
2.
3.
4.
5.
Reflect what the community wants and needs
Be clearly stated
Be focused as to purpose of the project the case
reflects
Appeal to both the head and the heart (emotional and
rational appeals)
Indicate what response is requested

Mission—Why do we exist?
• Philosophical
• Human/societal need
• Value and values
Goals—What do we want to achieve?
 Objectives—How will we achieve the goals?
 Programs and services—Which methods will we use?
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Governance
Staffing
Facilities or mechanics of service delivery
Finances—narrative, numerical, graphic
Total expense and income
• Philanthropic support required
•
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Strategic planning and program evaluation
History
Case Components
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Mission
Goals
Objectives
Programs
Governing Board
Staffing
Facilities, Equipment
Finances
Planning, Evaluation
History
Must Articulate
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Awareness, Insight to Problem
Desired Achievement
What’s in Place
Service to People (Stories)
Character, Quality of Organization
Qualifications, Strengths
Advantages, Strengths, Effectiveness
Validate Need for Philanthropy
Documents, Commitments, Strengths, Impact
Heroic Saga, Credibility
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Brochures
Foundation
proposals
Appeal letters
Campaign
prospectuses
News releases
Newsletter articles
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Web site
Speeches to
community
organizations
Face-to-face
conversations for
cultivation and
solicitation
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Planning
Internal education
Prospect involvement
Board and volunteer training and education
Determining where donors fit into your fundraising
program
The chart is based upon well-researched ratios.
After you create it:
1.
Evaluate it in terms of market conditions.
2.
Adapt it to market conditions.
3.
If necessary, change the gift ratios.
1.
2.
3.
4.
Gift range charts work best if they begin at the $25,000 level or
higher.
Prospect-to-donor ratio begins at five-to-one and gradually
reduces to two-to-one.
Prospects who don’t give at the identified range can move to
another range (even a lower one).
Don’t be too “legalistic” about the gift range chart. It is a tool,
not Scripture! For example, you may need to change gift
ranges and/or number of gifts.
Gift Range
$
# of Gifts
Cumulative #
Gifts
Prospect #
Cumulative #
of Prospects
$ per
Range
Cumulative $
3,000
2
2
10 (5:1)
10
6,000
6,000
1,500
4
6
20 (5:1)
30
6,000
12,000
750
12
18
48 (4:1)
78
9,000
21,000
500
18
36
72 (4:1)
150
9,000
30,000
250
24
60
72 (3:1)
222
6,000
36,000
10% of Donors
100
120
60% of Goal
180
360 (3:1)
582
400
70% of Donors
48,000
20% of Goal
20% of Donors
Under 100
$30 avg.
12,000
580
800 (2:1)
1,382
12,000
60,000
20% of Goal
Gift
Range $
# of Gifts
Cumulative #
Gifts
Prospect #
Cumulative #
of Prospects
$ per
Range
Cumulative $
25,000+
2
2
10 (5:1)
10
50,000
50,000
10,000
4
6
20 (5:1)
30
40,000
90,000
2,500
18
24
72 (4:1)
102
45,000
135,000
1,000
30
54
120 (4:1)
222
30,000
165,000
500
110
164
330 (3:1)
552
55,000
220,000
250
320
484
960 (3:1)
1,512
80,000
300,000
10% of Donors
60% of Goal
100
1,000
1,484
3,000 (3:1)
4,512
100,000
400,000
20% of Donors
20% of Goal
Under
100
3,334
70% of Donors
4,818
800 (2:1)
11,180
100,020
500,020
20% of Goal
The right person asking
the right prospect
for the right gift
for the right program
at the right time
in the right way.
 Doubling of the number of nonprofits in the United States in
the past 20 years
 Demographic changes and increased diversity of our sector
 Growing demands on nonprofits to meet the needs of society
 Changing amounts and forms of support by government and
private donors
 Blurring of boundaries between nonprofit, government, and
business sectors
 Increasing focus on accountability
 Greater focus on the credibility and effectiveness of nonprofit
organizations
 Decreasing participation by citizens in affairs of government
strat●e●gy [strat-i-jee]
1680–90; < Greek stratēgía generalship, equivalent to stratēg ( ós )
military commander, general ( strat ( ós ) army + -ēgos
“A coordinated set of activities that are aimed at creating
and sustaining a competitive advantage in advancing an
organization’s mission.”
At its base, strategic planning for a nonprofit organization is a
dynamic process in which key stakeholders determine 1) what
the community needs, 2) whether those needs fit the
organization’s mission, 3) which of those needs the organization
is able to address, and 4) how to close the gap between the two.
In the for-profit world this is often referred to as “creating value”.
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To ensure that the organization is achieving its
mission – and working towards its vision.
To ensure that everyone in the organization
knows what the overall goals are.
To build organizational cohesiveness.
To identify and evaluate opportunities.
•
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To determine which opportunities not to pursue.
To create strategic thinkers.
Defining important terms (“strategy”, “competitive
advantage”, “value proposition”, etc.)
 Why creating a “strategy” is not (necessarily) “planning”
 Understanding strategy as an opportunity
 Focusing on the existential issues (e.g., vision,
mission, ongoing viability)
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Macro Organizational Questions (Level 1)
•
•
•
•
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Where are we now? (Assessment)
Where should we be going? (Strategic Direction)
How should we get there? (Process)
Are we getting there? (Evaluation)
Micro Organizational Questions (Level 2)
•
•
•
•
•
•
What should we keep doing?
What should we start doing?
What should we stop doing?
How do we step up to new level?
Do we have the correct staff in place?
With whom should we collaborate?
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“Execution” of the execution
Mistaking goals for strategy
Generating more goals than can reasonably be pursued
Expecting strategies to fit within a rigid time line
Confusing strategic planning with consensus building
Forecasting the future from a snapshot in time
Pretending to be objective
Frustrating staff through bad data, inaction, or both
Continuous, responsive consideration of strategic
challenges is the path to timely, successful strategic
decision making and actions.
 SP should be aimed at operationalizing the strategic thinking that
must precede it, not replacing it with operational goals and objectives
that are most often not implemented.
 Real-Time Strategic Planning 1) requires the organization to regularly
explore internal and, especially, external dynamics on an ongoing (or
sometimes, intermittent) basis as opposed to a rigid timeline and 2)
requires actionable strategies – not tactical goals. Effective strategy
connects an organization’s mission to its goals.
 Essential Ingredients of Organizational Identity
 Programmatic Strategy Essentials
 Operational Strategy Essentials

Gather a cross-section of your key stakeholders
Members of staff, board, “customers”, funders, community
members
• Decide who is going to lead the process (internal or external)
• Decide whether to engage a consultant
•
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Review (or create) your Vision Statement
Review (or create) your Mission Statement
Review prior strategic plans (if they exist)
Conduct a market analysis
What is the size of our potential market?
• Who should we target as customers?
• Benchmark similar organizations
•
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Executive Summary
Vision, Mission, Core Values
Projected Outcomes
Results of Market Analysis
“Core” of the Plan
•
•
•
•
•
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Key Organizational Challenges and Opportunities
Overall Goals
Key Objectives
Persons responsible
Timelines
Funding Strategy
•
Plan for sustainability
 Creating, understanding, and following “the vision”
 Avoiding “terminology block”
 Stakeholder buy-in
 Asking (and answering) The Five Critical Strategic
Questions
 Clarity and congruence of goals and objectives
 Staff ownership
• Forecasting
 Making planning meaningful
• Linking strategic plan to workplans
• Linking strategic plan to annual operating plan

 Reviewing and (as necessary) refreshing the plan
• Stasis vs. Dynamism
• Ensuring fealty to mission

Leadership
• Organizational assessment
• Performance management
 Issues arise and need to be assessed on an ongoing basis
 Potential issues come from a number of internal and external
sources, including:
• Interactions with government officials at the federal level and,
where appropriate, at the state level in concert with others
• Discussions at major convenings
• Scans of research and press publications
• Infrastructure organizations (e.g., BoardSource, Council on
Foundations)
• Coalition partners (e.g., Interaction, National Assembly,
Center on Budget and Policy Priorities)
• Solicited input from the grassroots
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Define “the world as it is”
Define “the world as we wish it were”
Review focus group and survey data
Identify process outcomes
Identify documentary outcomes
Review the Five Critical Strategic Questions
Identify strategic goals and objectives
Identify tactics
Create timeline
Assign overall strategic planning leader
Assign leaders for goals and objectives
Ongoing/Core program
• Issues that are fundamental to the organization and are part of your strategic platform
- Link to top priorities in its theory of change
- Issues that help define the organization
• Six core issues:
- Assuring the vibrancy of the organization and the broader
- Tax incentives for charitable giving
- Regulatory framework for nonprofits (FTC, IRS, etc.)
- Ethics and accountability
Strategic Priority issues
• Core program/emerging issues that
rise to a higher level of resource
allocation
- Sense of urgency to take action
- Structured process to elevate to
strategic priority
- Clearly defined goals
- Clarity on approach, key
audiences and point of view
- Specified time frame for action
• Define the #1 strategic priority
Emerging Issues
Other Important Issues
• Issues on which to explore
• Important issues on which the
potential courses of action
organization will take a limited role
- Identified through a
- Outside the core program
structured process
- Clarity on point of view, strategic
- Specified time frame for
approach and key audiences
decision on course of action
- Clearly defined goals
- Specified time frame for action
• Examples include:
- Civic engagement
- International civic
engagement
- Federal/state budget
challenges
• Examples include:
- Building Value Together
- Corporate/Nonprofit Partnerships
Ongoing/Core
Program
Strategic Priority issues
Emerging Issues
Other Important
Issues
• Ongoing staff
• Cross-functional teams
• Preliminary
• Primarily handled
commitment to the
where appropriate, with
exploration conducted within the most
issue
clear accountability for
by special emerging
appropriate functional
• Primary responsibility
delivering on organizational
issues and strategic
area
resides within the
objectives
initiatives department
appropriate functional
• Primarily handled
area within the
within the most
organization, with crossappropriate functional
functional support as
area
needed
• Monitoring and
engaging on
developments among
key stakeholders
Action Audience
Steps
Completion
Date
(Actual vs.
Planned)
Accountable Priority How to
Party
Level Implement
$
Other
Support/
Resources
Success
Measures
Ultimately, the strategic plan is not about achieving
“outputs”; it’s about achieving your desired “outcomes”.