Developing a Strategic Fundraising Plan

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Developing a Strategic Fundraising Plan

• Youth United Conference Call

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How Are We Raising Funds Now?

• Share your most successful fundraiser and how
  much you raised.
• What are your challenges?
• How can we raise a lot of money in a sustainable
  way?

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Key Concepts

• 1. Effective Fund-raising is All About
  Relationships
• Why do people donate?
• Top Reason asked by someone they know.
• Start with Who do we know? (take some time for
  them to jot down all the people they know then
  share)
• Individuals, churches, civic clubs, student
  organizations, foundations, businesses, etc.

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Key Concepts

• 2. Use the Right Fund-raising Strategies
• What are some ways of raising money, besides
  fundraising events?
• Match strategies with prospects
• Presentation for church or civic club
• Written proposal for foundation or business
• Contest for student organizations
• One on one ask for wealthy alumnus.

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Key Concepts

• 3. Engage the Spectrum of Donors
• Large number of small donations or small number
  of large donations?
• 80-20 rule 80 of your funding will come from
  20 of the donations you receive.

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Key Concepts

• 4. Cultivate Major Donors
• Individuals donating 500 or more
• Develop a base of major donor support
• Start small and grow

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Key Concepts

• 5. Use Special Events Wisely
• Can be costly, time and labor intensive.
• Good means to
• Cultivate relationships
• Educate prospective donors
• Tap large number of small donors

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Key Concepts

• 7. Cultivation Takes Time
• Donors may increase donations over time with
  positive results.
• Have system to cultivate donor relationships.
• Thanking, recognition, information, invitations

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Steps for Effective Fundraising

• Establish Goals and Purposes
• Create a Fundraising Committee
• Examine Fundraising History
• Identify and Prioritize Prospects
• Select Strategies
• Follow Up and Communicate with Donors

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Step One Establish Goals and Purposes

• How much money are you raising and why?
• Motivates members
• Gives something concrete to shoot for
• Allows you to communicate clearly with donors
• Inspires donors to give

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Step Two Create Fundraising Committee

• Five-ten people, chair or two co-chairs
• Time, drive, commitment
• Variety of skills
• writing letters and proposals, designing
  presentations, organizing activities, asking for
  donations, etc.
• Faculty, affiliate, community members as advisors
• Position descriptions

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Step Two Contd

• Collaborating with Other Organizations
• Each organization has its own fund-raising
  committee
• Form joint fund-raising committee representing
  each organization
• Each group develops and submits fundraising plan
  to committee
• Committee
• Coordinates fund-raising efforts of all groups
• Reviews all plans for overlap.
• Ensures that prospects are not approached more
  than once.
• Obtains affiliate approval
• Communicates regularly with partner affiliate
• Coordinates collaborative efforts
• Formulate joint case
• Fundraising strategies

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Example
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Step Three Examine Fund-raising History

• Look at past experience. What worked? What
  didnt?
• Criteria
• Funds raised, expense, net profit
• Number of people needed
• People hours invested
• Cultivation value

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Step Three Contd

• Worth repeating?
• Criteria
• Can profit be increased in future?
• Were benefits worth the investment?
• Has a fundraiser become more successful over
  time?
• Potential to do so?

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Example
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Step Four Identify and Prioritize Prospects

• A. Start with who you know
• Identify significant chapter connections using
  LIA principle
• Linkage
• Interest of the prospect
• Ability to assist you

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Step Four Contd

• Individuals or groups
• Significant funds or in-kind donations.
• Full chapter leadership should participate in
  process.

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Step Four Contd

• Brainstorm prospects. With whom does your group
  have a linkage or connection, that might have an
  interest in your goals and the ability to assist
  you?

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Step Four Contd

• Churches, Civic organizations, other community
  groups
• Local businesses and corporations
• Activities that we are involved with
• Family or community grant-making foundations
• Key faculty, administration, and staff members
• Campus alumni and chapter alumni
• Family, friends, neighbors, relatives
• Anyone else?

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Step Four Contd

• B. For each prospect
• Linkage
• Main Contact
• What might they contribute
• Funds
• In-kind donation of goods or services
• Donated before? When?

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Step Four Contd

• C. Prioritize Prospects
• Who are top priority monetary prospects?
• Top in-kind prospects?
• D. Share prospect list with affiliate
• Obtain their approval before proceeding

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Example
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Step Five Select Strategies

• Determine best approach for each prospect
• In-kind prospects direct ask or letter/phone
  call
• Monetary prospects be strategic

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Example
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Step Six Follow Up and Communicate with Donors

• Thank donors within 72 hours
• Creative thanks and recognition for larger donors
• Keep donors informed