Resource Development Update

1. Resource Development Update David P. Whitehead Chief Development Officer February 8, 2007

2. 2006 Goals for SOI Resource Development • Raise $53.7 million (minus government and non-contributed sources) • U.S. Collaboration • Passion Model • Major Gifts & Planned Giving Pilot • LETR • Capacity to raise support for International regions • 2007 World Summer Games • Constituent Relationship Management System

3. SOI Contributed Growth Trends(excludes Government & Non-Contributed Sources) $57.8 million (9.1% increase) $53 million (8.8% increase) $48.6 million

4. Growth in Corporate MarketingCorporate Foundations and Associations $8 million in 2007 commitments already raised

5. Corporate Support to U.S. Programs • Bank of America (Team USA) • Starwood (New York, US promotion) • Mattel (US grants for Team Mattel) • Coca-Cola (2009 and US marketing effort) • Proctor & Gamble • Need More!

6. 2006 Year-End Strategies • Building the Pipeline • Tim Shriver’s Annual Appeal ($50,000) • Clinical Advisors Appeal (not effective) • Board appeal (86%) • Lynch Foundation Challenge • 1:1, current and new donors • John and Mary Manley Challenge • 1:1, $1,000 from international donors • 1:2, $5,000 from global donors • Added staff to international regions

7. Law Enforcement Torch Run • $26 million (up from $21 million in 2005) • Conference in Buffalo, over 1,000 participants • Leadership, Mike Teem & Dennis Alldridge • Staff, Cheri DeQuattro & Anna Berke • Momentum!

8. Become Donor-Centric • Donors aren’t “owned” by Programs or SOI • Donors are “managed” by relationship managers on behalf of the movement Relationship Managers Transformational Gifts SOI/Global Regions Principal/Global Corporations Major Gifts / Governments Local Regional Sponsorships/Donations/Grants Programs Cultivated Donors/Events SOI-CDMP Direct Response

9. Fundraising Process Identification Renewal Cultivation Stewardship Solicitation Acknowledgement

10. Elements of a Collaborative Fundraising Model • Management Systems • Donor Information • Business Rules • Revenue Sharing • Metrics • Development Staff • Skills • Training • Roles & Responsibilities • Motivators • Revenue Sharing • Other incentives • Recognition • Donor Management Principles Development Processes • Tools & Technology • CRM database • Contact & Event management applications

11. Focus for 2007 • Raise $57.8 million (distributing $19.8 million) • U.S. Collaboration • Building on the Passion Model (training) • Major Gifts/Planned Giving Pilot Project (June launch) • Cause Marketing Strategy (strategy development) • Support from International and Global Donors, $300,000 (Manley challenge) • 2007 World Summer Games Legacy, $6 million • 2009 World Winter Games, $6 million • LETR sponsorships, $400,000

12. 2007 Fundraising Targets( in $ Millions) Total Contributed = $57.8MM Total Revenue = $70.3MM

13. U.S. Collaborative Initiatives Timeline Integrated Timeline 2006 2007 2008 Q3 Q4 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Review early pilot results Revenue Sharing .... Refine Model Review early pilot results Recommendation to SOI & US Leadership CRM Phase II Implement Design Collaborative Model Major Gifts Pilot .... Pilot site selection Launch & Monitor Pilot Score Passion Model Define next steps Passion Model .... Cultivation Training Incorporate pilot learning * Includes CRM, Major Gifts, Planned Giving Note: all three projects had significant activities in Q1 and Q2 of 2006

14. Major Gifts Training for U.S. Programs • The Dynamics of Major Gift Fundraising • What Motivates Major Gift Donors and How Do We Identify Them • Developing and Implementing Cultivation Plans Through Moves Management • Making Cultivation Calls and How To Secure The Information You Need Through Active Listening • Strategizing the "Ask"  • Tips For Making The "Ask" and Responding To Objections • Scripting the "Ask" and Making The Close

15. Social Capital Partnerships • Developed Consulting Relationship with Social Capital Partnerships • Update global corporate marketing strategy • Evaluate current corporate marketing infrastructure • Conduct relevant corporate research • Create new products • New messaging, branding strategy • Develop corporate strategies at global, regional and national levels

16. U.S. Cause Marketing Strategy • Corporate Development and Communication Teams collaboration • Working with existing global partners to maximize activation opportunities • U.S. Cause-Related Marketing Strategy Session

17. What does $300 million look like?

18. Roles and responsibilities • Roles: • Case for Support • Writes proposal • Accountable for the gift • Stewardship of the gift • Program is the center Natural Partners (many) Program orFund Recipient (many) • Roles: • Influence • Determining donor’s interest • Communicating with donor • Asks for the gift • Input on strategy Donor • Roles: • Linking donor interest & funding opportunity • Defining/executing strategy • Accountable to the donor • Stewardship of the donor • Donor is the center Relationship Manager (1)

19. Questions

20. Charity Navigator        

21. Charity Navigator      

22. Charity Navigator • Efficiency • Administrative Expenses, 15% • Fundraising Expenses, 10% • Fundraising Efficiency, 10-15 cents/$1 • Capacity • Revenue Growth, (3.7%-6.3%) • Program Expense Growth, (average 3-5 years) • Working capital ratio (50% of annual needs) • Some watchdogs frown on a high ratio