UNITED WAY LEARNING SERIES

Developing aDeveloping a Strategic

Fund Development PlanFund Development Plan

Agendag

Fundamentals of a Strategic Fund Development Planp

Ten Funding ModelsTen Funding Models 

C ti Pl Th t W k fCreating a Plan That Works for Your Nonprofit

Schedule

9:00 – 9:20 REGISTRATION & NETWORKING

9:20 – 10:00 PRESENTATION & DISCUSSION

10:00 10:15 BREAK10:00 – 10:15 BREAK

10:15 – 10:55 SMALL GROUP WORK

10:55 – 11:30 REPORT BACK

11:30 WRAP UP11:30 WRAP UP

Today’s workshop participantsy p p p

• Human Service • Arts and culture• EducationNonprofit

• Government • Foundations• CorporateMajor Education

• Health• InternationalE i t l

Nonprofit Type:   

p• Individual: mem/annual• Individual: major donor• Workplace giving

jFunding Source

• Environmental • Workplace giving• Fees for services

• Up to $1MM• $1MM ‐ $5MM$ $Size:

• DOD• EDRoles

• $5MM ‐ $10MM• $10MM +

Size:   • Other

What challenges do we face…g

…in creating a fund development plan?•

de e op e t p a

•••••••

FundamentalsFundamentals

What makes a plan “strategic”?p g

St t i b t CHOICES kStrategy is about CHOICES you make

in selecting a broad approach thatin selecting a broad approach that

will leverage your distinctive assetswill leverage your distinctive assets

in order to achieve your goal.in order to achieve your goal.

Donors fund your mission & impacty p

Mission

OrganizationMission 

Reputa VisionReputa‐tion

Matur Impact Matur‐ity

It’s all about the peoplep p

YOUR DONORS• Passion

YOUR LEADERS AND TEAM• Passion

• Motivation• Connection to your people• Decision makers

Passion• Ability to inspire• Relationship‐building Ti t f d i i• Decision‐makers

• Affluence • Benefits they receive from giving

• Time spent on fundraising• Making the case • Stories to make impact of giving come alive

Tactics follow strategygy

Donor SegmentationDonor Segmentation

Key Tactics

Financial Targets per Donor Type and Tactics 

Calendar of Activities, Budget, Systems

Stewardship

T F diTen Funding ModelsModels

Stanford Social Innovation ReviewStanford Social Innovation Review

“Ten Nonprofit Funding Models”p g

1‐Heartfelt Connector

2‐Beneficiary Builder

8‐Resource Recycler

9‐Market Makery

3‐Member Motivator

4 Big Bettor

10‐Local Nationalizer

4‐Big Bettor

5‐Public Provider6‐Policy Innovator7‐Beneficiary Broker

Peter Kim, Gail Perreault & William Foster, Stanford Social Innovation Review, 2009

Core elements of funding models

Source

• Individuals, foundations, government, corporations, mixed

Source

p ,

Decision‐maker

• Multitude of individuals, few individuals, policy‐makers, administrators

• Self‐interest altruism collective interest

Motivation

• Self interest, altruism, collective interest

13

Primary Source - IndividualsyMODEL Heartfelt Connector Beneficiary Builder Member Motivator Big Bettor

Character‐istics

Broad mission appeal Provides individual benefits & connection

Serve a group, creates collective community

Mission may be fulfilled within timeframetimeframe

Examples Medical research, environment, international

Universities, hospitals Religious congregations, arts, environment

Medical research, environment

Save the Children Harvard University NPR March of Dimes (polio)

Source Individual Individual Individual Individual or FoundationFoundation

Decision‐Maker

Multitude of individuals

Multitude of individuals

Multitude of individuals

Few individuals

Motivation Altruism Self‐interest then  Collective Interest Altruismaltruism

Tactics Special events… Direct mail… Corporate sponsorships

Fees… Major gifts Membership… Fees… Special events… Major gifts Direct mail

Major gifts

sponsorships gifts… Direct mail

Primary Source - Governmenty

MODEL Public Provider Policy Innovator Benficiary BrokerMODEL Public Provider Policy Innovator Benficiary Broker

Character‐istics

Provides services seen as govt responsibilities 

Offers significant new approach,  often result of 

Beneficiaries decide how to spend the money

crisisExamples Human services, 

education, internationalHuman services, education, international

Health, housing, employment

Interfaith Works Latin American Youth Ardmore EnterprisesInterfaith Works (homeless shelters)

Latin American Youth Center (LAYC Academy)

Ardmore Enterprises (disabilities)

Source Government (via RFP) Government (via champion}

Government (via reimbusement)

Decision‐Maker

Administrators Policymakers Multitude of individuals

Motivation Collective interest Collective interest Self‐interest

Tactics Government Contracts Earmark or govt. pilot project

Gov't. reimbursement

Primary Source – Corp. + Mixedy p

MODEL Resource Recycler Market Maker Local NationalizerMODEL Resource Recycler Market Maker Local Nationalizer

Character‐istics

Nonprofit uses surplus or low‐cost goods

Funder with self‐interest and abililty to pay 

Top priority local issue, common to many localities

Examples Food, international Health, conservation Education, youth development

Capital Area Food Bank The Trust for Public Land Big Brothers Big Sisters ofCapital Area Food Bank The Trust for Public Land Big Brothers Big Sisters of America

Source Corporate Mixed Mixed

i i i di id l f i di id l / f i di id lDecision‐Maker

Few individuals Mass of individuals / few individuals

Few individuals

Motivation Self‐interest Altruism/self‐interest Altruism

Tactics In‐kind giving Fees… Major gifts Major gifts… Special events

Creating a PlanCreating a Plan

Strategic Development Plan Outlineg p

Mission,  Vision

STRATEGIC DEVELOPMENT PLAN

Vision, Impact, 

Strategic Plan

Realistic & Ambitious 

Core Funding 

FINANCIAL GOAL

Core MessagesStrategy Messages

Key Tactics

Roles of ED, DOD, Board, 

Donor Segmen‐tation and 

FinancialTargets per Donor Type &

,Volunteers

Activity Calendar, Budget, SStewardship Type & 

Tactics Systems

Let’s get going!g g g

Table Team Work

1 Consider how CP® Fund Development ‐ Strategy Planning Tool relates to your nonprofity p

2 Get input from others at table

3As a team, select one organization as a “case study” for planning as time 

it3 permits.

4 Report back (5 minutes)

People will forget what you saidPeople will forget what you said, people will forget what you did, but people will never forget how

you made them feel "you made them feel."

Maya Angelou

Thank you to our Sponsor and Partners!

And special thanks to all of you!all of you!  

Mary RobinsonJulie Crudele