Fundraising and Resource Mobilization

1. Session 3 -- January 13, 2010 Richard Male and Associates for the Trinidad Community Foundation Fundraising and Resource Mobilization

2. Fundraising in 2010: Challenges and Opportunities The Present Situation

3. The Flow of Charitable Gifts Historically: Where the Money Comes From Bequests 8% Corps 5% Foundations 12% Individuals 76% Source: The Chronicle of Philanthropy

4. The Flow of Charitable Gifts Historically: Where the Money Goes Education 14% Health 9% Other 34% Human Services 8% Religious 36% Source: The Chronicle of Philanthropy

5. What is the current economic and political situation in 2010?

6. What is the economic and political situation in 2010? • Most challenging time in my 40 years • Still very likely to see 20% of nonprofits (grassroots) go out of business during this “Great Recession” • Economy is as volatile as a tornado: there is no way to predict where it will touch down, how much damage it will do or when the clouds will part • Every state but three ran a deficit in 2009--and for many, these challenges will likely increase in 2010

7. Pressing issues facing grant-seekers/educational organizations Emerging trends • Many private foundations are trying to hold their giving steady for 2010, but likely will decrease grant funding • Foundations likely to reduce giving in 2010 and 2011 significantly unless the stock market dramatically increases

8. Pressing issues facing grant-seekers/educational organizations • Foundations likely to make grants primarily to existing grantees • Significant number of foundations shifting their grant making to basic needs, emergency and human services • Foundations likely to shift some of their dollars to general operating support instead of program dollars

9. Impact on individual donations • Individual donor giving is based on the psychology of how the donors are feeling about their retirement income, financial portfolio, value of their house, job and future. All indicators remain low. • Individuals likely to give 25%-33% less in 2010. • Individuals more likely to give to existing organizations they know and have strong relationships and involvement with. • Individual gifts likely to be spread over greater periods of time.

10. Impact on corporate resources for grant-seeking and educational institutions • Most corporations give 1% of pre-tax earnings; this have been relatively flat since 1985 • Corporate sponsorships and the use of marketing dollars are likely to continue--but at reduced levels • Corporations will become even more selective and “bottom-line oriented” than in the past • Giving of volunteer time and in-kind product will increase more than giving dollars

11. Impact on government contracts and grants • 75% of the 1 trillion dollars going to nonprofit organizations throughout the United States yearly comes from government sources • With almost every state running a deficit, sales tax revenues are down. Income taxes will be lowered and corporate taxes will decrease • A likely upturn in government support can be expected in 2011

12. Still, there is reason to be hopeful during these times • Americans are incredibly generous people who will continue to give when “touched” and when consistent trust is built • People are still giving, but at reduced levels • Charities and needs are becoming increasingly more visible • Conducting educational sessions for your donors will become even more important • Some aspects of the economy are growing – tied to stimulus funding and economic trends, with health care likely to provide new revenue streams • We will come out of these hard times more educated and stronger

13. A checklist of the essential pieces you need in place Are You Ready To Raise Money?

14. Desire to become • self-sufficient Financial Self-sufficiency 2. Commitment from board and staff 9. Evaluation / reporting 3. Leadership within organization 8. Execution of the plan 7. Infrastructure: designated staff / resources / database 4. Strong programs / compelling need 6. Resource Development Plan / road map 5. Trust / accountability / teamwork What It Takes

15. Are You Ready To Raise Money? • Clear sense of mission? • Are your programs strong? • Is your leadership active and engaged? • Are you in touch with your constituency, members or clients? • Is there a working partnership between staff and leadership?

16. Are You Ready To Raise Money, con’t. • Do your goals match your budget? • Are your financial reporting systems in place? • Do you have a successful track record of raising money? • Are you accountable for your money? • Can you demonstrate results?

17. Positioning Your OrganizationCommunications Strategies to Effectively Compete Susan Liehe, Senior Associate - RMA

18. Why outreach matters Your donors/funders expect you to tell your story Build board, employee, customer/client pride You think you can do without it… until you can’t Supports raising money: the “agrarian” metaphor

19. Key Messages 3-5 absolute essentials -- very short Memorized, repeated (and repeatable) “Elevator speech” Gee whiz, who knew? Myths and misconceptions addressed? What is your brand, your promise Roadmap for newsletter, email, speeches

20. Your different audiences Employees Donors and funders Volunteers Business owners Other nonprofits Civic clubs (Rotary) Media Customers, clients Schools Churches

21. Public speaking Prepare a specific topic (NOT whole mission) Outline – incl. opening and closing Add data, stories, humor, rhetorical questions Develop blurb, ppt, handouts, leave-behind Rehearse to a strict 20 min. MAX Practice and get feedback Promote: hunger for well-presented, thoughtful content Goal: 1 speech/month

22. Using the media Do not fear a reporter calling An investment in your “trust account” Consider the power of ink, air, online (versus other tools in your toolbox) Volunteers, donors, clients, referrals… Set a goal: one story pitched/month

23. What makes a great story? Focus on one individual Trends: doubled, up 36%, etc. Facts, data, measured results Apply large issue  small example Problem . . . Solution Milestone (graduation) 1-2 resources cued up (not just you)

24. Successful media relations Know the players – who, how, when Know what they’re covering—big, recent pieces Busy and competitive environment “Right” point to hand off the material The power of an exclusive Access—make it easy and quick Be a go-to person on more than just your org. Send notes—links—etc.

25. Use Board “Ambassadors” Key messages (training in small segments) “Toolkit” of small, concise literature/materials Fresh, credible data Coach them  in their own circles (An engaged role: energizes and instills pride) Compile periodic “outreach report” – see impact, see that it matters

26. Two points to ponder Beware of emulating “Project Ozma” “The greatest challenge in communication . . .”

27. The advantages and disadvantages of each funding source Identifying The Funding Pie

28. Why diversify your revenue base? • It’s an insurance policy – spread the risk • Secret to financial stability and survival • Communicating to multiple constituencies, donors and stakeholders • Alleviates the risk of one or a few donors controlling the strategic direction of the organization • Strive for 70:30 ratio of controllable vs. uncontrollable income

29. Controllable vs. Uncontrollable Income Controllable Fee for service / contracts Memberships Small donors under $100 Large donors over $100 Special events Uncontrollable Foundation grants National religious grants Corporate donations Richard Male & Assoc, Inc.

30. Controllable vs. Uncontrollable Income Controllable Endowment / Wills / Bequests Partnerships with Corporations Earned Income and Entrepreneurial Ventures Uncontrollable United Way organizations Government offices through RFPs Service clubs Richard Male & Assoc, Inc.

31. Current Trends and Future Issues • Corporate philanthropic giving is flat; strategic marketing is the growth area. • Giving by individuals will increase at a moderate growth rate in proportion to the economy and the perceived optimism of the donor • Philanthropic trusts managed primarily by financial institutions are growing moderately. • Transfer of stock/real estate is a growth area – set up stock account • Country is aging. • Charitable trusts / donor advised funds are growing. • Foundation giving has increased by 28% since 1986, but decreased 2001-03. It is down now and expected to decrease further (up to 10-30%) in 2010-12. Richard Male & Assoc, Inc.

32. Philanthropic TrustsThe Hidden Pockets of Money • Managed by trust departments at Financial Institutions • Use banking relationships to gain access • Smaller grants – under $10,000 Richard Male & Assoc, Inc.

33. Philanthropic TrustsThe Hidden Pockets of Money • Purpose – can be used for general operating funds • Generally long term support Richard Male & Assoc, Inc.

34. Strategies For Religious Funding National Denomination / Religious Foundations Judicatory / Diocese Local / Regional Congregation Richard Male & Assoc, Inc.

35. Strategies For Religious Funding • Lay involvement • Meet with Minister, Priest, Rabbi • Get support from local congregation • Build support among the lay volunteers • Advertise in congregation bulletin and newsletter • Network through your constituency • Be visible with a congregation • National denominational funds • Religious foundations Richard Male & Assoc, Inc.

36. Philanthropy Memberships Product Endorsement Service Endorsement Marketing Sponsorships/ Events • In-Kind: • Volunteers • Product/Services • Tech. Assistance • Matching Gifts • Two Vehicles of Giving: • Corporate Giving Programs • Corporate Foundations/Trusts Richard Male & Assoc, Inc. New Corporate Philanthropy

37. Corporate GivingDon’t Just Think of Money There are THREE primary ways in which corporations can help your organization • Financial • Gifts-Traditional Philanthropy (Corporate Foundations) • Memberships • Marketing (Corporate Giving Programs) • Products • Sponsorships (special events) • Endorsement of Services • Matching Gifts Richard Male & Assoc, Inc.

38. Corporate GivingDon’t Just Think of Money • In-Kind Gifts / Product Contributions • Office Equipment • Computers • Furniture • Consumer Goods • Printing • Use of Facilities • Donations for Raffles (products or services) • Advertising (newspapers, TV & in-house/external corporate publications) Richard Male & Assoc, Inc.

39. Corporate GivingDon’t Just Think of Money • Employee Involvement • Computers/Technical • Marketing/Public Relations/Media/Design • Legal (incorporation, bylaws, personnel policies, tax questions) Financial (budgeting, financial planning) • Board of Directors • Committees (standing committees/committee assignments) Richard Male & Assoc, Inc.

40. The Corporate Triangle Customer Community Employee

41. Pfizer 400 Bristol Meyers 376.6 Merck 350 Microsoft Johnson & Johnson 300 IBM 288 283 Safeway 250 Kroger Hewlett Packard $ Millions 200 Sears 179 Minnesota Mining 151 AT&T 150 Home Depot Intel 100 91.5 Phillip Morris 60 Sara Lee 50 51.6 33 Cisco Systems 30.7 25.3 25.2 20.5 19.9 14.4 14 13.3 0 Product Donations by Major Corporations in 2002 Richard Male & Assoc, Inc.

42. Raising Money From Private Foundations • Fund programs, projects and capital campaigns • Good for start-up programs • Average three-year cycle • Try community foundations first

43. Types of Foundations • Private Family Foundations: Staffed • Private Family Foundations: Unstaffed, Family/Independent foundations Richard Male & Assoc, Inc.

44. Foundation News / Information / Funding Websites • Guide Star http://www.guidestar.org • Foundation Center http://www.fdncenter.org • Philanthropy News Network http://www.pnnonline.org • Colorado Grants Guide http://www.crcamerica.org Richard Male & Assoc, Inc.

45. Foundation News / Information / Funding Websites • Council on Foundations – Affinity Groups http://www.cof.org • National Council of Nonprofit Associations http://www.ncna.org • Rich Tips http://www.richardmale.com Richard Male & Assoc, Inc.

46. Foundation News / Information / Funding Websites • The Chronicle of Philanthropy http://www.philanthropy.com • Non-Profit Times http://www.nptimes.com Richard Male & Assoc, Inc.

47. Affinity Group Websites From www.cof.org • Grantmakers for Children, Youth & Families  http://www.gcyf.org/ • Asian Americans/Pacific Islanders in Philanthropy http://www.aapip.org/ • Disability Funders Network http://www.disabilityfunders.org/ • Grantmakers in Health http://www.gih.org/ Richard Male & Assoc, Inc.

48. The Advantages and Disadvantages of Funders Foundations Advantages • Larger Sums of Money • Not much paperwork • Will fund special projects, programs, capital • Good ‘positioning’ $’s • High cost / benefit Disadvantages • Takes a long time – up to 12+ months • Good for only 3 years with exceptions • Over dependence on large grants • Usually does not fund admin expenses Richard Male & Assoc, Inc.

49. The Advantages and Disadvantages of Funders Corporations Advantages • Self interest • Receive money over long periods of time • Good to leverage other private money • In-kind donations and product donations • Good introduction to the wealth in your community Disadvantages • Can be nickled and dimed to death • Small amounts-if given through the giving program • Not always responsive to new and controversial issues Richard Male & Assoc, Inc.

50. The Advantages and Disadvantages of Funders Churches Advantages • Best donors in America • Long term sources of income • Involvement of membership • Donated services • High leverage-good potential with other church money (national) • Jumpstart to planned giving • Access to key people • Moral credibility • Historically very supportive of poor people’s issues Disadvantages • Long time to receive money • Must have support locally from religious leaders • Generally small amounts Richard Male & Assoc, Inc.