1. September 10, 2013

2. Instructions for Warm-Up Exercise: Take a few minutes to look at the “I Give Because” page on the wall. Using the stickers provided, mark the statements that apply to you and how you make decisions in your own nonprofit giving. You may mark as many statements as you like. If there is something that you would like to add (another reason why you give), write it on a post-it and add it to the “I also give because…” box at the bottom. If someone has added a statement in this section that you feel also applies to you, you may add a sticker to that post-it.

3. Agenda: Introductions Working Agreements & Goals Part I: Laying the Groundwork Fundraising overview What you need before you begin fundraising The board’s role in fundraising Creating a fundraising plan Part II: How to Fundraise Creating an individual donor program Applying for grants Generating corporate & business donations Special Events Fundraising Trends Questions & feedback

4. Introductions 1 MINUTE with your partner: Name Organization Role—Development Director, ED, etc. What’s the word or image that comes to mind when you think of “Fundraising”? 4 MINUTES with your team: Name Organization Role—same as above, etc. What’s the word or image that comes to mind when you think of “Fundraising”? POPCORN

5. Goals for today's workshop: Develop understanding about effective methods of raising money for non-profits Share knowledge and real-life experiences that others can use to increase their fundraising success Lay the groundwork for success- a clear fundraising plan- and provide the practical tools to make the plan a reality

6. Working Agreements Recognize we are all at different levels, with varying experiences. Celebrate the diversity and the learning. Cell phones on stun. One conversation at a time- no sidebars. Vegas Rule. Parking Lot.

7. PART I: Laying the Groundwork

8. What is fundraising?

9. fundraising- (noun) the raising of assets and resources from various sources for the support of an organization or a specific project. - The Association of Fundraising Professionals Fundraising Dictionary Online

10. What are some things you need to have in place before you start fundraising?

11. Things to have in place before you start: Organizational budget Non-profit tax status A donor tracking database A system to quickly acknowledge donations and donors Individuals (staff, board, volunteers) who are trained in how to ask for money Knowledge of available funding sources Basic materials about the organization Firm knowledge of who you are Clarity and agreement about how the funds will be used

12. Source: GivingUSA 2013 Highlights (www.givingusareports.org/2013)

13. The Board’s Role in Fundraising

14. One of the board’s primary responsibilities is ensuring that the organization has adequate funding to fulfill its mission. Board members do this by:  …reviewing financial documents and budgets.  …making personal financial donations.  …helping to make connections with prospective donors.  …asking for donations.

15. Quick gut check: How are your board members doing in fulfilling their fundraising responsibilities?

16. Three steps to board fundraising success: Make it clear Make it easy Make it fun

17. The Fund Development Committee The Fund Development Committee oversees fundraising strategy and the board’s fundraising activities by…  …working with staff to establish a strategic fundraising plan.  …engaging in fundraising activities.  …taking the lead in certain fundraising activities.  …being responsible for other board members’ fundraising engagement.

18. What does this all mean? Fundraising is a combined effort between staff (primarily the Executive Director and Development director, if applicable) and the members of the board and development committee.

19. Think to yourself: What is one thing you can do in the next 48 hours to more effectively engage the members of your board in fundraising?

20. Creating a Fundraising Plan

21. What is a fundraising plan?

22. Step One: Assess your strengths and weaknesses

23. Group Exercise: Assess your strengths and weaknesses Board and board giving Staff Members, donors & prospects Grants Corporate & business donations Fundraising events Earned income

24. Step Two: Review your current budget and your recent fundraising numbers

25. FY 2011FY 2012FY 2013FY 2014 (projected) Major Donors ($1,000+)$2,500 (2 donors)$4,750 (4 donors)$12,300 (8 donors)$30,000 (20 donors) Mid-level donors ($250-$999)$2,000 (3 donors)$3,600 (5 donors)$5,800 (15 donors)$20,000 (35 donors) Low-level donors (<$249)$1,500 (8 donors)$3,000 (14 donors)$4,900 (26 donors)$7,500 (50 donors) TOTAL INDIVIDUAL DONORS$6,000 (13 donors)$11,350 (23 donors)$23,000 (41 donors)$57,500 Greater New Orleans Foundation$10,000$0$17,000$20,000 Baptist Community Ministries$5,000 $0 Foundation for Louisiana$0$15,000$50,000$35,000 TOTAL GRANTS$15,000$20,000$67,000$55,000 Entergy$2,500$1,500$3,500$0 Home Depot$10,000 $15,000 TOTAL CORPORATE & BUSINESS$12,500$11,500$18,500$15,000 Annual Dinner (Net)$6,000$7,500$12,000$15,000 Wine & Cheese Party (Net)$250$0$350$500 TOTAL EVENTS$6,250$7,500$12,350$15,500 Tuition Fees$4,600$6,750$5,800$7,000 TOTAL EARNED INCOME$4,600$6,750$5,800$7,000 TOTAL INCOME$44,350$57,100$126,650$150,000

26. Step Three: Set Goals

27. GOAL: $165,000 DEADLINE: July 31, 2013 (end of FY 2013) Donor Goals: Secure 25 gifts of $1,000 or more Increase donor retention rate to 70% Get at least three prospect names from each board member Raise $67,500 total Grant Goals: Apply for five grants; receive at least two grants Contact each foundation at least four times during grant period Raise $55,000 total Corporate Giving Goals: Identify five potential corporate sponsors with which a board or staff member has a personal connection Ask for four donations Raise $15,000 total Event Goals: Secure sponsors that cover 100% of Annual Dinner event costs Net $20,500 Earned Income Goals: Have 50% returning students and 25% “bring-a-friend”/ referral students Raise $7,000 total

28. Step Four: Create your fundraising calendar

29. JANUARY 2013 Holidays & Fixed Dates New Year's Day- January 1 Twelfth Night- January 6 MLK Day- January 21 Fundraising Dates & Deadlines Annual Dinner Planning Kickoff Meeting- January 15 (MARY & JOE) Smith Family Foundation Grant due- January 25 (STEVEN) FEBRUARY 2013 Holidays & Fixed Dates Lundi Gras- February 11 Mardi Gras- February 12 Fundraising Dates & Deadlines Annual Dinner Monthly Planning Meeting- February 28 (MARY & JOE) MARCH 2013 Holidays & Fixed Dates St. Patrick's Day- March 17 Staff Retreat- March 29-31 Fundraising Dates & Deadlines Annual Dinner Monthly Planning Meeting- March 21 (MARY & JOE) APRIL 2013 Holidays & Fixed Dates Volunteer Appreciation Luncheon- April 6 French Quarter Fest- April 12-14 Jazz Fest- April 26-28 Fundraising Dates & Deadlines Final Annual Dinner Planning Meeting- April 16 (MARY & JOE) Annual Dinner- April 20 (MARY & JOE) MAY 2013 Holidays & Fixed Dates Jazz Fest- May 2-5 Mother's Day- May 12 Memorial Day- May 27 Fundraising Dates & Deadlines Cultivation visits with Baton Rouge-area donors (MARY) JUNE 2013 Holidays & Fixed Dates Father's Day- June 16 Fundraising Dates & Deadlines Jones Family Foundation Grant Deadline- June 7 (STEVEN) Send mid-year letter- June 14 (MARY) JULY 2013 Holidays & Fixed Dates Independence Day- July 4 Mid-Year Program Strategy Meeting- July 8 Fundraising Dates & Deadlines GeneriCorp corporate funding proposal due- July 16 (STEVEN) AUGUST 2013 Holidays & Fixed Dates School starts Fundraising Dates & Deadlines Cultivation visits with New Orleans-area donors (MARY) SEPTEMBER 2013 Holidays & Fixed Dates Labor Day- September 2 Rosh Hashanah- September 4-6 Fundraising Dates & Deadlines Community Foundation Grant due- September 30 (STEVEN) OCTOBER 2013 Holidays & Fixed Dates Columbus Day- October 14 Halloween- October 31 Fundraising Dates & Deadlines Launch Annual Board Campaign- October 18 (MARY) NOVEMBER 2013 Holidays & Fixed Dates Veteran's Day- November 11 Hanukkah begins- November 27 Thanksgiving- November 28 Fundraising Dates & Deadlines Mid-Campaign Meeting- November 15 (MARY) DECEMBER 2013 Holidays & Fixed Dates Hanukkah ends- December 5 Christmas- December 24-25 New Year's Eve- December 31 Fundraising Dates & Deadlines Last day of campaign- December 20 (MARY) Send year-end letter- December 22 (MARY) Send year-end email- December 31 (MARY)

30. Think quietly: how are you doing in relation to those four steps? Grab a post-it & make a note: of the fundraising planning tools just shared, what one thing might you try out to upgrade your planning?

31. PART II: How to Fundraise

32. Creating an Individual Donor Program

34. Major Donors Mid- Level Donors Small Donors The Donor Pyramid

35. Why do people give?

36. What makes a person give to a specific organization?

37. A person may give money for many reasons. A person gives money to a specific organization because of: Ability Belief Contact

38. To find donors, look for people who feel they have the ability to give and who believe in your organization. Then, ASK!

39. Where can you find these potential donors?

40. Find donors......by asking board members and volunteers to refer friends and family....at your events....at partnering organizations....on your mailing and email lists....among your existing donors.

41. Short exercise: List a few of your potential individual donors and who from your organization could approach them.

42. Thank before you bank! Within 72 hours, make a personal thank you call or send a thank you note.

43. How do you keep track of information about your donors and donations? What information will your organization need to know for the future?

44. Applying for Grants

45. Where do I find my grant? Online research (The Foundation Center, Google) Community & foundation listservs Other organizations doing similar work

46. Listservs With Grant Announcements Grantstation Insider (Free with LANO membership) Unified Nonprofits of Greater New Orleans (unifiednonprofits.org) Congressman Cedric Richmond's government grants newsletter- Richmond.grants@mail.house.gov Larger foundations (i.e. Greater New Orleans Foundation, Foundation for Louisiana, New Orleans Jazz & Heritage Festival Foundation, Louisiana Cultural Economy Foundation, etc.) The Grantsmanship Center (tgci.com) Neighborhoods Partnership Network (npnnola.com)

47. Common documents required for grants Your mission statement/ program overview/ Case for Support Your current budget List of board members and their biographies List of staff members and their biographies Copy of IRS determination letter & 990 form Audited financial statement

48. Consider… The funder's priorities The funder's organizational requirements The funder's geographic focus The size of the grant Other organizations the funder has supported The funding timeline Whether you have the capacity to write the proposal Whether you have the capacity to follow the funding requirements

49. Where do I find this information? The Foundation Center GuideStar.org 990 tax forms Google/ Funder's website When in doubt, call the foundation to ask!

50. YES: Grant will cover operating expenses Grant can support existing activities Grant can expand activities in a way that is productive and helps advance your mission NO: Grant leads to “mission creep” or creates new work that distracts from your mission and priorities

51. Read the directions Length, format, font, number of copies, required attachments, things you should include, things you should NOT include…

52. Five Rules for Writing Fundable Grant Proposals: 1- Keep it clear and simple 2- Use (credible) data 3- Use real-life stories 4- Be specific 5- Use language that the person reviewing the grant will understand

53. Creating your project budget Make a list of everything you will need to spend money on for this project Use real numbers to calculate how much each item will cost EXPENSE ITEMCOST Part time teacher (12 hrs/ week @ $16/ hr x 48 weeks) $9,216 Paint, paintbrushes & modeling clay for 48 students ($38/ student/ semester x 3 semesters) $5,472 Course description photocopies (350 color copies @ $.89/ copy) $312 TOTAL$15,000

54. Consider overhead and administrative costs Supervising staff and administrative staff who will play a role in the project Office rent, utilities and insurance Legal, bookkeeping and payroll expenses

55. Budget Narrative/ Budget Justification The narrative serves two purposes: It explains how the costs were estimated. It justifies the need for the cost.

56. The importance of editing Make sure everything matches Use “the brother-in-law test” Have someone else review the directions and make sure you followed them Have the person/ people responsible for doing the work review your draft Review a full copy, with all attachments, arranged exactly the way the foundation will see it

57. When you your proposal is accepted Thank the funder Confirm when you will receive the check, what documentation you will need to sign and how they prefer to hear from you Start planning for after the grant period

58. When your proposal is declined Thank the funder Ask for feedback Ask if you can apply in the next grant cycle Ask if you can stay in touch and, if so, how

59. Generating Corporate & Business Donations

60. Potential business donors: Businesses that have a stake in your work Businesses that would want to advertise to your audience Your vendors (bank, realtor, office supplies company, etc.) Employers of your board members or of people your board members know Businesses in your neighborhood

61. In-Kind vs. Monetary Marketing vs. Philanthropy

62. Letter of Introduction: Who you are Your connection to the company What you are asking for How the company will be recognized Your contact information and follow-up plan

63. Ways to recognize corporate donors: Name something after them Hang a plaque with their name and logo List them in your annual report List them in your event program Give them a quote in your press release Mention their name when making a speech Put their logo on your website or promotional materials …and don’t forget to ask how they’d like to be recognized!

64. Planning Special Events

65. The Harsh Reality: Special events are an inefficient way to raise money.

66. So why do people do them? To attract new donors. To engage current or past donors. To have fun. To reinforce your mission. To generate publicity. If done correctly, to raise funds.

67. Generating funds through special events

68. Event Sponsors Remember those ideas about finding your corporate donors?

69. Tickets Factor in the per-person cost Also factor in the financial capability of your audience

70. Auctions, Raffles and Ad Books Ask people in your network to contribute Research who has contributed to other events Think of customer bases that overlap with your likely guests

71. The importance of your event team

72. A strong event team: …has a clear plan and group buy-in. …has a strong leader. …has enough members for each person to take on the workload they would like. …has a range of talents and interests. …can get the word out to potential sponsors and attendees.

73. Planning and Follow-Through

74. Creating a budget and task list Involve the whole team Make sure everyone knows Update regularly

75. Frequent communication among the team Make it regular Make adjustments as necessary Celebrate success

76. And remember… The event is the beginning, not the end. Follow up with guests Follow up with sponsors and other donors Take notes for next time Set up your team for future engagement

77. Fundraising Trends

78. Cause-Related Marketing Marketing in which a for-profit organization, by using the name of a not-for-profit organization, promotes its product and in return provides financial support to the organization according to a predetermined formula based on sales and purchases. - The Association of Fundraising Professionals Fundraising Dictionary Online

79. Establishing a cause-marketing revenue stream: Identify a corporate supporter whose target customer base relates to your nonprofit Be prepared to explain how the partnership would benefit them Work with an attorney and an accountant

80. Earned Income Money received by a person or organization for product sales or service rendered. - The Association of Fundraising Professionals Fundraising Dictionary Online

81. “According to the Center on Nonprofits and Philanthropy, private-sourced feed for goods and services made up more than 45 percent of total nonprofit sector revenue in 2010.” Richard Tait, “The Importance of Earned Income in Your Funding Model,” The Stanford Social Innovation Review, Nov. 7, 2011

82. Establishing an earned income revenue stream: Identify what product or service you can reasonably provide. Confirm that there is a demand for that product or service. Work with an accountant.

83. Finding an idea for earned income New products for new customers Find new customers for existing products Develop new products for existing customers Improve profit from current earned income activities Source: Louisiana Association of Nonprofit Organizations “Fund Development: Diversifying Your Portfolio: A Framework for Sustainability” (2012)

84. Social Media Fundraising Crowdfunding Twitter and Facebook Multi-Channel Fundraising

85. Examples of nonprofit crowdfunding platforms: Crowdrise FirstGiving Facebook Causes

86. Twitter & Facebook The fastest growing demographic on Twitter is the 55–64 year age bracket. This demographic has grown 79% since 2012. The 45–54 year age bracket is the fastest growing demographic on both Facebook and Google+. 25% of smartphone owners ages 18–44 say they can’t recall the last time their smartphone wasn’t next to them Belle Beth Cooper, “10 Surprising Social Media Statistics That Might Make You Rethink Your Social Strategy,” Buffer, July 16, 2013

87. When and How Often?? Facebook: No more than 3x/ day Twitter: At least 1x/ day Mornings: 8:00-9:00 a.m. Lunch: 12:00-1:00 p.m. End of Day: 4:30-6:00 p.m. Nights: 9:30-11:00 p.m. Source: “Fundraising With Social Media,” Presented by Social Media for Nonprofits, Freer Sackler Galleries and the Razoo Foundation Greater New Orleans Foundation’s Organizational Effectiveness program, 2013

88. Multi-Channel Fundraising A donor is more likely to give when he or she has been asked multiple times through multiple methods Different people respond better to different types of asks Coordination and list management are key

89. Fundraising 101: Some Closing Thoughts Know where you are. Create a team. Create a plan. Work the plan. Don’t forget the data.

90. Recommended Fundraising & Non-Profit Resources: Greater New Orleans Foundation's “Needs Scan Report” & Primers (gnof.org) Kim Klein's Fundraising for Social Change Giving USA (www.givingusareports.org)

91. Next Steps Revisit Parking Lot Evaluation Questionnaire One Thing I Will Commit to Doing One Word that Best Reflects My Experience Today

92. Greater New Orleans Foundation ~ 1055 St Charles Ave, Suite 100 New Orleans, LA 70130 ~ (504) 598-4663 ~ gnof.org The Funding Seed ~ P.O. Box 52154 ~ New Orleans, LA 70152 (504) 307-7220 ~ thefundingseed.com