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The Coming of Age of Collaborative Fundraising

The Coming of Age of Collaborative Fundraising. June 18, 2014. The Rise of Collaborative Fundraising. “…a joint effort of two or more groups to raise more money than either group could alone.” Kim Klein, publisher & editor, Grassroots Fundraising Journal. Current USA Giving Trend.

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The Coming of Age of Collaborative Fundraising

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  1. The Coming of Age of Collaborative Fundraising June 18, 2014

  2. The Rise of Collaborative Fundraising • “…a joint effort of two or more groups to raise more money than either group could alone.” Kim Klein, publisher & editor, Grassroots Fundraising Journal

  3. Current USA Giving Trend • 2013- $337 Billion Giving increased by 4.4% over last year • 72%- Individuals • 15% - Foundations • 8% -Bequests • 5% - Corporations Giving USA

  4. Education grew the most 8.9% • Health, environmental, animal- related and arts 6-8.5% • Giving to Religion and by Companies continues to slow • The wealthy are becoming more confident to give Giving USA

  5. Who is benefitting? • "When stock values are high, it makes a huge difference in the amount of money going into education, but it has little or no impact on religious donations, which rely on lots of small gifts from individuals.“ Info provided by The Atlas of Giving

  6. More N.C. Non-Profits • Total as of Feb. 2007: over 86,000 • Total as of Nov. 2008: 91,971 • Total as of Dec. 2011: 105,150 • Total as of Dec. 2013: 108,301 • 26% increasein 6 years! Info provided by North Carolina Secretary of State's Office

  7. Robust Growth for Non-Profits • 2010 – North Carolina 10% of workforce is non-profits 400,000 paid employees • 2013- USA 44% of NFPs plan to create new positions 20% plan to freeze, reduce or eliminate positions North Carolina Philanthropy Journal Non-Profit HR Solutions

  8. Challenging Conditions • More Non-profits vying • Non-profits ok with operational fundraising…struggling with capital fundraising • Harder to get donor attention • In spite of stock market, still cautious mood among many major donors • Non-profits very careful about over-reaching in setting fundraising goals

  9. The Rise of Collaborative Fundraising • “…a joint effort of two or more groups to raise more money than either group could alone.” Kim Klein, publisher & editor, Grassroots Fundraising Journal

  10. The Rise of Collaborative Fundraising

  11. What Collaborative Fundraising is NOT • Teaming to support a worthy project where there is no direct benefit back to the organization • Fundraising by budget allocation rather than actual fundraising

  12. Example #1 • Sea Pines Montessori and Hilton Head Prep- late 1990s • Collaborated in a capital campaign • To fund a common facility and entrance • Successful due to: • Big common goal • Strong leadership • Rules of engagement

  13. How fundraising looked

  14. “Joint fundraising is probably the most difficult form of non-profit collaborations. And the results are far from certain. I think the risk/reward perception is still not where it would need to be to make it attractive for most.” Jonathan Howard, co-founder, Cause & Effect consulting services

  15. Major Donor confided… • “We once did a collaborative gift to well-known project and that was the beginning of the end of the place as the agencies fought over control of the funds.  Kind of like throwing a steak over the fence at the dog pound.”

  16. Collaborative Fundraising works well when groups: • Share a similar BIG vision • Share a similar culture and often size • Commitment to joint planning to work through issues in advance • Trust each other (Board chairs often insure good feelings permeate) • Develop a written agreement about money & labor • Are perceived to be equally invested • Agreement on how funds raised are allocated to achieve campaign objectives

  17. Example #2 • A North Carolina Community College wants to fund a Manufacturing Training Center • Invited Collaborative Partners (Schools, Chamber of Commerce, Industry, County, plus the College as lead) • Feasibility Study encouraging: • A paradigm change for county • Unifying • Attracting major leaders

  18. A BIG Vision • “A Big vision is probably the most critical factor. A Big vision compels everyone (organizations & donors) to look beyond their own capabilities.“ Jeffrey Ouellette, director of development, Central Square Theatre, Cambridge M.A.

  19. When it works Well…continued • The reward must be greater than if each group had attempted on its own. • Marketing benefit: elevates the project well beyond what a single organization could achieve. • Collaborative fundraising allows groups to access a larger audience and donor pool. • A joint funding arm (committee) generally works to identify, cultivate and solicit joint prospects. • Each group solicits their own prospects, but certain donors are solicited ‘jointly.’ • Able to access bigger donors and avoid ‘nickeling and diming.’

  20. Example #3 • Midlands Gives- a wonderful collaborative effort • Unifying BIG IDEA • Strong leadership and credibility of CCCF • Clear objectives • Low risk – avoids donor confusion

  21. When Collaborative Fundraising does NOT work well, groups: • Do not have the resources to meet the campaign readiness steps • Fear losing their donors • Can not find the right groups to work with • Lack of commitment of time to collaborate • Boards and staff do not trust each other • Can not agree on who to solicit jointly, and how to allocate funds raised

  22. In Summary: What Makes the Difference • A BIG Vision • Strong volunteer leadership that is confident, and insists on ‘trust’ • When the groups know that their major donor prospects like ‘Collaborative Fundraising.’ • Keeping the collaboration clear (and simple) • Advance written ‘rules of engagement.’

  23. Example #4 • Buncombe County Five Greenways, plus City, County, and Friends of Connect Buncombe • Goal: Raise a nucleus fund of possibly several million for matching grants for specific greenways • By joining together can raise and leverage more support from funders (DOT, Tiger Grants, CDBG, LWCF, etc.)

  24. What to Collaborate on • Joint campaign planning team • Advance project and community assessment • Advance PR and marketing • Case development • Consulting • Feasibility study • Campaign coordinator • Office and back-office • Cultivation event(s) • Lead gift solicitations • Grant writing • PR & Marketing • Campaign events & Celebration • Project Management

  25. Sample: Collaborative Fundraising Organizational Chart Lead Org. A Org. B Org. C Joint Funding Committee Campaign Steering Committee Campaign Director & Coordinator • Prospect Evaluation • Lead & Challenge Gift • Other identified prospects to be solicited jointly: Phases Board Staff Former Bd. Lead High Major Major Foundation Gift-in-kind Public Board Staff Former Bd. Lead High Major Major Foundation Gift-in-kind Public Board Staff Former Bd. Lead High Major Major Foundation Gift-in-kind Public

  26. High Quality Results On Schedule, Over Goal, and Within Budget

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