guide for establishing a national revenue development plan

__________________________________________________________________Establishing a National Revenue Development Program 1 of 27

Guide for Establishing aNational Revenue Development Plan

Based on CHS Experience

Introduction

The Canadian Hemophilia Society (CHS) expresses its appreciation to thePublic Health Agency of Canada (Office of the Voluntary Sector) for itssupport towards creating a new national Revenue Development Program forthe organization. The development of our new fundraising program, which isnow being implemented, would not have been possible without the financialassistance provided by the Public Health Agency of Canada.

This report reviews the steps taken by CHS in creating its national RevenueDevelopment Program along with summaries of various documentsproduced as part of the process. While every organization has its own uniquecircumstances and requirements, many of the activities undertaken by CHSin this process may be applicable to other organizations.

CHS Mission

The Canadian Hemophilia Society exists to improve the quality of life for allpersons with hemophilia and other inherited bleeding disorders and to find acure. CHS is dedicated to:

• Assuring that all people with inherited bleeding disorders have readyaccess to the highest possible standard of care;

• Increasing awareness and knowledge of issues affecting care andtreatment;

• Initiating and promoting research that will continue to improve careand result in a cure;

• Encouraging peer support and social interaction within the inheritedbleeding disorders community;

• Informing people with inherited bleeding disorders about their rightsand eliminating discrimination;


• Assisting people with inherited bleeding disorders who live indeveloping countries to improve their quality of care.

Background

The Canadian Hemophilia Society was founded in 1953 by a group ofdedicated hemophiliacs, family members and physicians. Through theirtireless efforts, the CHS quickly developed from a small, Montreal-basedsupport group to a national volunteer organization with chapters in eachprovince. In 1969 the first treatment centre in Canada, offeringcomprehensive care, was opened in Montreal. By the early 1980s CHS hadbuilt a network of hemophilia treatment centres across Canada.

Since its inception, CHS has from time to time depended on the generosityof the hemophilia community and those with an interest in the disease tosupport its work and programs. In recent years, principally due to theCanadian blood tragedy of the 1980s, the majority of CHS funding has comefrom governments, the pharmaceutical industry and a limited amount offundraising activity.

In the year 2000, the CHS undertook a strategic planning process in order toreconsider the CHS mission, redefine its values and articulate a vision tosustain the organization. One key direction of the Strategic Plan was todiversify the organization’s funding base. Direct mailing and telemarketingprograms, once profitable, were no longer performing. Both programs cameinto being as a result of the notoriety received by CHS through the taintedblood scandal and the Krever Inquiry hearings. However, as time passedsince the Inquiry’s report and subsequent implementation of many of itsrecommendations, those who supported CHS with regular direct mail ortelemarketing gifts found other more current causes to get behind.

As of April 2004, CHS no longer received operational funding through theHepatitis C Division of Health Canada, representing a significant loss ofrevenue. For the first time since the strategic plan was approved in 2000, theCHS ended the 2003 fiscal year with a deficit. Indications were that thedeficit would continue to grow unless programs were cut or revenuesincreased. The CHS Board determined that it was critical for the Society toseek other sources of funding in order to sustain the national infrastructure


and maintain the capability of the organization to continue to develop anddeliver nation-wide programs and services.

Step 1: Campaign Feasibility Study

As a result of the impending financial crisis, CHS considered the possibilityof conducting a national capital campaign to raise funds for a variety ofprojects including research, awareness building and program delivery. Aplanning study was commissioned to explore the feasibility of conductingsuch a campaign and the potential for success.

A national fundraising consulting firm, The Fundraising Network wasengaged to undertake the study. The study took place over a three-monthperiod beginning in October 2003. During that period 45 personal interviewsand one focus group session were conducted. The confidential personalinterviews included both internal and external constituencies (12 internal, 20external, 13 combined internal/external).

During the interview process, participants were asked to comment on avariety of issues relating to the conduct of a potential, successful capitalcampaign. The subject areas tested include:• Case for Support• Campaign goal and structure• Availability of volunteer leadership• Availability of prospective donors• Potential personal commitments to the campaign

Findings and Conclusions

Results from the interviews were categorized into the following topic areas,which were used to measure the organization’s potential for success in acampaign.

• Image• Organization• Environment• Experience• Case for Support• Leadership and Volunteers


• Prospects and Giving

Image

The image of CHS was considered appropriate for a campaign at thetime. CHS was well known and respected within its constituency.Unfortunately, the constituency is very small. While some in the generalcommunity had an awareness of CHS, primarily due to the activities ofthe organization during the Krever Inquiry, there was little understandingof the CHS current mandate.

Through its efforts with tainted blood many current donors perceivedCHS as the Canadian blood safety advocate. Many comments were madeabout the recent decision of CHS not to pursue this perceived traditionalrole. This was believed to potentially be damaging to the ongoing publicawareness of CHS.

Those who knew CHS perceived it as a leader in its field in the provisionof high quality healthcare programs and services for those withhemophilia and other bleeding disorders. Those with lengthyrelationships as donors, event participants, volunteers or patients andtheir families had the strongest and most positive feelings towards theorganization.

There was high praise for the innovative treatment programs and genuineatmosphere of caring that permeates the organization. This was creditedto the dedication of the volunteer leadership at all levels.

Almost everyone interviewed suggested the largest obstacle facing CHSwas its lack of cultivated visibility in the broader philanthropiccommunity.

Organization

The rating given for organization was low primarily due to the historicallack of recognition and support for fundraising at the senioradministrative and board level. Fundraising had always been somethingthat had gone on in the background without meaningful purpose anddirection.


While opting in the past not to create a separate foundation charged withdevelopment responsibilities, the board had created a ResourceDevelopment Committee. Unfortunately, many on the committee did notsee themselves as fundraisers nor felt capable of playing that role.

The organizational structure of CHS was problematic for fundraising.While there were “some guidelines” in place there was generaluncertainty over who had responsibility for fundraising at various levels.As a result everyone did a little and no one did it well. There wasinfrequent communication and cooperation between those responsible forfundraising at the national and chapter levels.

Recent attempts to hire a Director of Resource Development had failedfor a variety of reasons and the board appeared to have lost itsenthusiasm to proceed further in that direction.

During the course of the planning study, many of the respondents felt thatin order for the CHS campaign to succeed, it was essential that a numberof champions be recruited to take campaign leadership roles. This factwas reinforced by comments made about the CHS Board – “Fundraisingwas not part of the job description when they were recruited. As a resultthere is no philanthropic culture at the top.”

Environment

Environmental conditions were positive enough to proceed with acampaign.

Moving ahead with the projects listed in the preliminary case was notdependent upon government approval, therefore the campaign to coverthe capital costs could have preceded at any time.

Many interviewees mentioned their commitments to local communitycharities. However, there were no other national health related campaignsthat would have provided serious competition for a CHS campaign.There was no other significant campaign activity on the radar for theshort-term future. However, plans were in the works for a new Canadian


Blood Services Foundation campaign that could impact a CHS campaignif they were to run concurrently.

Current market conditions were relatively favourable for major businessin the country and the overall economic outlook appeared to be steady.

Experience

CHS did not have sufficient internal expertise and background to proceedwith a campaign at the time. Additional resources would be required tomanage a campaign of this magnitude.

The current national fundraising program came into being as a result ofunsolicited support for the organization’s activities during the taintedblood crisis. The program consisted of direct mail and tele-marketingprovided by an outside supplier. These programs while expensive can bevery beneficial if tied to a cultivation and donor upgrading program.However, in this case, costs had risen to an unrealistic level with newrevenues in decline. At the chapter level most fundraising was in the wayof special events with a few small direct gifts from members.

CHS completed a successful capital campaign several years ago forhemophilia research. Donors from the “Million Dollar Club” campaignwould provide a good source of prospects for the new campaign. Severalvolunteers and senior staff could bring their experience and campaignknow-how to this project from the previous campaign.

Fundraising, as previously stated, was still relatively new to CHS, and theorganization had not yet had an opportunity to firmly establish moresophisticated fundraising techniques, such as a major gift or plannedgiving program. The organization hoped to use the campaign as aspringboard for these and other future fundraising activities.

Case for Support

The Case Summary developed for the campaign tested well enough withpotential donors and volunteers, indicating certain appeal and suitabilityfor the campaign.


The case was described by many as too much of the same old thing withlittle in the way of vision for the future. The one exception was thepotential presented by having a research component to the case. Therewere also concerns that a compelling case had not been made for each ofthe components in the document. However, this would not be fatal for thecampaign and in fact demonstrated the type of language prospectivedonors expect to hear in an appeal for funds for a health related cause. Noone disputed the need, just the manner in which it was presented.

Leadership/Volunteers

The organization did not have a sufficient pool of existing volunteersinterested in fundraising to proceed with initiating campaignorganization.

The existing volunteer resources consisted of board and board committeemembers, event related volunteers and those who participated in the“Million Dollar” campaign.

A much larger pool of experienced and qualified volunteers existed at thegrassroots level of the organization. This group is made up of those whohave worked on local CHS appeals and other charitable activities in theircommunity. However, CHS must be able to recruit experiencedfundraising talent from outside its ranks in order to raise the amount ofmoney contemplated for this campaign.

During the study, those interviewed identified a small number ofindividuals capable of providing the calibre of leadership required for thecampaign. However, the majority of the names suggested already wereplaying a volunteer role for the organization.

An encouraging indicator of volunteer availability was the large numberof interviewees who agreed to help in the campaign, if asked.

Prospects/Giving

The rating for prospects was lower than desired in recognition of thework yet to be done to identify and evaluate a suitable number ofprospects at the highest gift levels. However, the number and quality of


prospects identified during the study demonstrated the need for acooperative national approach to identifying untapped potential thatexists within the broader CHS community.

The existing donor base would be a good starting place but required a lotof mining to discover potential campaign prospects capable of makingsignificant gifts. However, many of the names on the list were a result ofdirect response activity and special events. Many of these had also beenalienated from the organization by recent aggressive telemarketingactivities.

Interviewees identified a number of prospects at the mid to lower giftlevels. However, insufficient numbers were suggested at the levelsrequired for success.

Recommendations

The following recommendations were made as a result of the study.

Campaign Viability

The results of the study clearly indicated that the proposed $15million capital campaign, as tested, would not be viable and could doirreparable damage to the image of the organization, the morale of themembership and future fundraising opportunities.

Comprehensive Fundraising Program

As an alternative to undertaking a traditional capital campaign, asoriginally proposed, counsel proposed the creation of an ongoingcomprehensive fundraising program for the organization.

Create a Foundation

One of the most significant obstacles to overcome in the developmentof a national fundraising program was the organizational structure ofCHS. The current structure had evolved to empower regional chaptersto operate in a semi-autonomous manner within a broad national


framework. This system may have been ideal for program delivery butwould prove to be very troublesome for a large-scale nation-widefundraising program. It was therefore recommended that a newcharitable foundation or similar structure be created as theprincipal/universal fundraising vehicle for CHS.

Philanthropy Policy

The roles and responsibilities between the national, chapter, regionaland fundraising boards, fundraising staff, regular staff and volunteers,would have to be clearly defined to avoid duplication of effort anddonor confusion.

A Philanthropy Policy would be required stating the governingprinciples of the fundraising relationship between all of thoseinvolved in raising money for CHS.

Development Council

One of the major challenges facing all national charities is ensuringtheir development programs and operations remain relevant andimpact fully on every region served by the organization. To addressthis issue, it was recommended that the foundation (or similarstructure) should hold an annual development symposium orDevelopment Council, to keep key stakeholders informed and currenton foundation activities, and to seek input on regional/communityissues.

Fundraising Methodologies

The new foundation (or similar structure) would have to choose froma myriad of different fundraising techniques and methodologiesavailable to achieve its financial goals. These include: major gifts,annual giving, planned giving and an innovation program.

Donor Recognition

A comprehensive donor recognition program must be developed toprovide varying levels of recognition for both donors and volunteers.

__________________________________________________________________Establishing a National Revenue Development Program 10 of27

The recognition program should reflect specific fundraising activities,regional issues, and should be easily tracked and maintained.

Prospect Review

It was recommended that a permanent Prospect Review Committee bestruck. This committee would be responsible for the ongoingidentification, evaluation and qualification of significant major giftprospects across the country.

Volunteer Recruitment

The foundation (or similar structure) should create a VolunteerRecruitment Committee to identify, cultivate and recruit volunteersfor major gift assignments and other revenue development activities.

Resources

Measures should be taken to ensure that the fundraising program isadequately and appropriately resourced including physical, human andfinancial resources.

Step 2: A New Direction for CHS Based on Recommendations

Resulting from the consultant’s report the CHS Board decided not toproceed with the campaign. It also considered how and which ones of theother recommendations to implement. Following discussions at the boardlevel, a meeting was convened in December 2004 with key volunteers andstaff members from across the country. The group examined the studyrecommendations and set the tone for the process to determine how best todevelop a new fundraising strategy for CHS. During the December meetingand through a survey conducted of the meeting participants a number ofstrengths, issues and opportunities were identified that would become themajor discussion points in the development of a new fundraising program.

Strengths of the Organization

• Residual goodwill from Krever hearings


• Perceived as Canada’s blood watchdog• Perceived as successful and fiscally sound• Strong “case for support” elements• Perceived as a team player with other health charities• No direct competition with exception of Canadian Blood Services• Well-defined, semi-cultivated donor base• Strong emotional ties to existing donors• Knowledgeable and committed leadership• Respected by government• Perceived as a leader by international hemophilia organizations

Issues Identified and Obstacles to Overcome

• Multi-level governance and operating structure• Some people at the local level don’t always relate to the national

organization• No one on the national board outside of the hemophilia community• Incidences of mistrust between all levels of the organization• Perception of “old boys club” at the leadership level• We don’t ask the extended hemophilia community to give, in fact we

discourage it• Small numbers compared to other diseases• Need is seen as being local• Relatively unknown to the general public• We take our treatment and care programs for granted• Families have a fear of being identified or labeled• New generations do not perceive the disease with the same peril as

previous ones, hence a declining interest in the CHS• Few direct links to business or traditional philanthropic community• Volunteers tend to feel that giving time should be as important as

giving money• Need for new revenues not understood or seen as compelling by the

hemophilia community• Parochial approach to fundraising.

Challenges and Opportunities


• Thinking nationally, not just regionally, and realize that programs arenationwide programs and not just those of one chapter or region

• Developing a fundraising tool kit for use across the country• Major gift and planned gift prospects need to be centrally tracked.

Need to coordinate at all levels• Being sensitive to donors’ needs• Explaining to donors that donations shared with other parts of the

country will result in increased local benefits• Requiring leadership for the greater good• Implementing a common donor management software• Younger generation are more willing to work together• Finding an ultimate goal to inspire us all…”Stop the bleeding, find a

cure”

Period of Consultation

Following the December meetings, a Framework for Philanthropy documentwas produced that set out the objectives of a new fundraising program, theissues to be resolved and structural/program options for consideration. Thedocument was used as discussion/planning tool during a series of personalmeetings held between CHS leadership and key players at the chapter andregional levels. As well, a number of presentations were made at variouschapter and region meetings where feedback was encouraged. Thesepreliminary discussions led up to a Fundraising Summit being held inFebruary 2005. The summit was attended by the volunteer leadership andstaff from CHS and all chapters and regions. In addition, representativesfrom government and the pharmaceutical industry were in attendance. Priorto the meeting all attendees received the Blueprint for a Nationwide Fundraising

Program document and were asked to complete an online questionnaire aboutthe contents of the document. The results of the questionnaire were used tostructure the agenda for the summit.

The summit was a two-day meeting that allowed for a thorough discussionof all relevant issues and resulted in a consensus being developed over everyoption being considered in the development of a new fundraising strategy.

During the consultation process and resulting Fundraising Summit a numberof principles and fundamental positions were established. These would be


used to influence and shape the various recommendations in the eventualfundraising plan presented to the CHS Board for approval. Theseorganizational tenets included:

• No one should lose out from new fundraising activities.• A process/formula is required to decide what money is raised for and

how it is distributed.• The program will strive to be simple, equitable and efficient.• All fundraising will be conducted within the rules and regulations of

the Canada Revenue Agency (CRA).• Fundraising activities will be taking place at all levels of the

organization.• A new fundraising program must welcome and appreciate new

volunteers who have the required ability to “give and get”.• The limited human and financial resources will be kept in mind.• New resources will be required to implement the fundraising program.• Donors’ interests must be protected in all fundraising activities.• All restricted monies will be spent according to the donors’ wishes.• A major focus for ongoing fundraising should be the hemophilia

community itself.• There is a willingness to share existing fundraising experience and

expertise with others across the country.• There is a need for major gifts and planned giving programs to be

instituted at all levels.• There is interest in pursuing a national signature event for the

organization.• New fundraising resources (staff, methodologies, fundraising

expertise, support systems, etc.) will be shared across the country.• The structure of a new fundraising program should be coordinated at

the national level but involve the chapters and regions in decisionmaking and program delivery.

• Chapters may opt out of participating in any program but will alsoforgo sharing in any revenues generated through that program.

• A centralized database will be needed to operate many acceptedfundraising techniques. The database can be maintained by thenational office but local access must be available.

• The costs for establishing the program should be covered initiallyfrom the national CHS budget (reserves).


• A national membership program may be an option in the future butmore study is required before it is implemented.

• A direct response program is considered important in meeting theneeds of chapters and being an effective companion tool for major andplanned giving programs.

• An effective case for support can be created that will convince donorsto support CHS.

Fundraising Plan

Using the above decision points a proposed fundraising plan document wasdrafted. The plan was shared with volunteer leadership at the national andchapter level and was eventually presented to the board in June 2005. Theboard endorsed the plan and allocated a budget of up to $500,000 from itscontingency fund to cover start up costs. Staff were asked to put plans inplace to implement the recommendations of the plan and create a new CHSRevenue Development Program.

These are the highlights of the Plan and Revenue Development Program.

Step 3: CHS Revenue Development Program

Fundraising Structure

The Revenue Development Program comes into being as a result of alengthy consultation process with all of the chapter and regionalorganizations that makeup the CHS family. The Executive Director of CHSin consultation with the National Fundraising Council will be responsible tothe board for implementing and administering the program. The CHS Boardhas final authority over the program.

National Fundraising Council

The National Fundraising Council (NFC) will be created by the CHS Boardto provide guidance and counsel to the Revenue Development Program. TheNFC will be responsible for ensuring that the interests and perspectives of


the various provincial chapters and regions of CHS are represented andconsidered in the implementation of the Revenue Development Program.

The NFC is responsible for the following activities:

• Recommend to the CHS Board financial and program goals forthe Revenue Development Program

• Review and approval an annual fundraising plan as prepared bystaff

• Monitor the progress of implementation of the annual plan• Provide advice on various matters relating to fundraising as

requested by the board or staff

Board of Governors

A Board of Governors will be created to provide an opportunity forindividuals with affluence, influence and a passion for the work of CHS andits affiliate members to become involved with the nation-wide fundraisingactivities. The principal role of the Board of Governors will be to provideoverall advice and assist directly with the Major Giving and Planned GivingPrograms.

Development Office

A Development Office will house all of the staff involved with fundraisingactivities at the national level. Staff working on Revenue DevelopmentProgram activities in various locations across the country will also bedeemed to be part of the Development Office. This group will design andimplement a number of fundraising programs at the national level as well asassist chapters and regions in the design and implementation of programsthat would more effectively be delivered at the local level. Some programswill require national coordination as well as local involvement.

Director of Development

The Director of Development is the chief development officer for theorganization and is responsible for overseeing all of the fundraisingactivities related to the Revenue Development Program. The Director of


Development reports to the Executive Director, CHS. The Director ofDevelopment is supported by a Major Giving & Planned Giving Managerand an Annual Giving Manager as well as research and clerical support.Eventually a Development Coordinator will be hired for each of severalregional offices to manage all of the fundraising related activities within thatprovince or region. (Western Canada, Ontario, Quebec and MaritimeCanada)

Fundraising Programs

Annual Giving

The Development Office is responsible for designing direct response,memoriam/tribute, sponsorship, innovation and membership programs to beimplemented at the national and chapter level. They suggest guidelines andstrategies for special events and third party events to be implemented at thechapter level. The Development Office also coordinates the design andongoing implementation of the CHS signature event.

The Development Office keeps chapters informed as to results of variousfundraising programs from their area and seeks regional input wheneverpossible.

The chapters and regions continue to operate many of the fundraisingprograms they did prior to the Revenue Development Program coming intoforce. These include local special events, gaming, merchandise sales andcertain direct response programs. They work with the Development Office inthe delivery of new direct response, memoriam and tribute, sponsorship,innovation and membership programs. If local participation is not available,the Development Office does its best to implement the programs on behalfof the chapter or region.

Signature Event

CHS will hold an annual signature special event as the public hallmarkof its fundraising activities.


The event has its own operating structure and relies heavily upon acommitted group of volunteers, for whom this would be the best use oftheir time and resources for the organization. Corporate partners andsignificant sponsorship are vital to mount the type of signature eventrequired by CHS.

The NFC in conjunction with the Development Office is responsible forcoordinating the process of determining the best type of event tobecome the CHS signature event. The Signature Event Coordinator isresponsible for designing and coordinating the event in conjunctionwith local volunteers and the NFC.

Third Party Events and Activities

CHS like many charities relies heavily on the work and activity of otherorganizations to raise funds for them. Service clubs, community groups,corporations and other organizations often enjoy and gain advantagefrom supporting charities. Every effort is given to encourage and recruitthird party fundraising activity. Most of these types of events take placeat the chapter or region level.

To avoid confusion and misunderstandings with potential third partypartners, the Development Office assists chapters through a third partyactivity policy and protocol.

Direct Response

The Development Office will be responsible for designing andimplementing a national direct response program. The program will bepart of the annual fundraising plan to be approved by the NFC. Namesfrom the national database will be used for the program and the namesof any new donors will be added to the database. The program mayinvolve multiple approaches to various segments of the database anduse direct mail, telemarketing and email technology. It will be designedto achieve two purposes. First it will be used to find new donors to CHSand secondly it must effectively provide existing donors with a methodand incentive to increase their level of giving. Successful results from


this last objective will be the indication to move donors into the majorgiving program stream.

The messages to be used for direct response will be reviewed by theNFC and will be tailored to each region where possible, using localstories, mailing addresses, and letter signatories. The Annual GivingManager will keep each chapter informed as to results from their areaand will seek advice from chapters on strategies for future directresponse activities

Memoriam/Tribute Giving

The Annual Giving Manager will design a memoriam and tributeprogram. It will include developing policies and materials to enabledonors to make memoriam and tribute gifts. This will include providingdonation materials to chapters and regions for distribution to funeralhomes and placing advertisements in newspaper obituary columns inkey markets across the country. The memoriam/tribute program will bemarketed extensively in all fundraising promotional vehicles. Tributegiving is another excellent method of building the donor base andgenerating awareness for CHS.

Innovation ProgramMore and more organizations are looking for new ways to raise money.Donors today are better informed and are attracted to organizations thatmeet their needs with creativity and sophistication. Corporations haveshrinking philanthropic budgets and are becoming averse to givingaway shareholders’ money without some direct benefit to the firm’sbottom line.

Some of the more progressive charitable organizations in NorthAmerica are meeting these challenges by developing fundraisingprograms that go beyond traditional philanthropy. These programsusually involve some form of business opportunity or corporatepartnership such as sponsorship and co-branding. Other programsinclude public gaming and retail operations.


An example of an innovative program is the Quebec Chapter’sColouring Book Campaign. The chapter has been selling giantchildren’s colouring books for many years. Pharmaceutical companiesand other companies have been strong supporters of this project. Localvolunteers sell the books to friends, family and colleagues. It has been agreat item to promote at Christmas time and many volunteers find iteasier to sell an item rather than ask for just a cash donation.

The Annual Giving Manager will actively pursue opportunities in thisnon-traditional market with the development of an Innovation Program.Certain programs will be operated at the national level while otherssuch as the colouring book project will be made available to chaptersfor their implementation.

National Membership Program

The NFC will be asked to examine the merits of developing a nationalmembership program as method of cultivating and seeking “specialinvolvement” from those with bleeding disorders and their families. Theprogram would be based on an annual fee but would offer certain benefitsnot available to other donors.

Major Giving & Planned Giving

The Development Office will be responsible for designing and implementingthese programs The Major Giving and Planned Giving Manager will haveresponsibility for working with chapters and regions to coordinatesolicitations and strategically plan the process of prospect identification,research and cultivation at the chapter level. This requires specific technicalknowledge, the ability to match the right volunteer with a prospect and craftproposals that inspire giving. A system-wide database is essential for theseprograms to operate effectively.

Volunteers and staff at the chapter or regional level are not expected to haveall of the technical skills necessary to implement these programs. However,they do have the relationships with many of the prospects that will beapproached to consider giving through one or both of these programs.Therefore, local involvement in the process is vital. Local volunteers and


staff will be asked by the Development Office to assist with theidentification, cultivation and solicitation of major and planned givingprospects. The number of prospects approached on an annual basis will varyfrom chapter to chapter but the time commitment from local staff andvolunteers will be minimal compared to the eventual returns.

It is recognized that initially in lieu of local evaluation committees being inplace, the volunteer leadership for the Major Giving and Planned GivingPrograms will come from the Board of Governors. The Board will assist theDevelopment Office with the cultivation and solicitation of readilyidentifiable prospects across the country that have had their lives positivelyaffected by the work of CHS; and have the capacity to support a major orplanned gift. The role of the Board may decrease as more local staff andvolunteers become available and comfortable with the process. The Boardwill however, be important in the ongoing cultivation and solicitation ofsignificant major donors as identified by the Development Office and localevaluation committees.

Generic Case for Support

CHS must take the ingredients that have already been developed in thepreliminary campaign Case for Support and other organizational plans, andturn them into a compelling and easy to understand generic Case for Supportto be used for all fundraising activities.

CHS will be undertaking a process of strategic review in the near future thatmay change the vision and mission of the organization. This of course wouldalter the CHS Case for Support. However, until that process happens theelements of the current case can very effectively be woven into a compellingcase document.

Central Database

A centralized database is essential for the operation of most of thefundraising programs described herein. Fundraising is a process that has tobe carefully monitored and tracked. Activities must be reported andrecorded. As the Revenue Development Program starts to operate, theDevelopment Office will require the ability to maintain donor records, issue


receipts and acknowledge gifts. A variety of specifically designed softwarepackages are available for this purpose.

The central database must contain all of the names of current donors andprospects from all levels of the organization. This should also include thenames that have been collected by various parts of the organization ofindividuals who have expressed interest in bleeding disorders or have anyknown relationship to the organization. The larger the list the more likelysignificant prospects will be identified and presented with an opportunity tomake a donation to the organization.

The database must respect the privacy of the information that is gathered andreflect the laws of the land in that regard. Access to the database must berestricted with strict guidelines in place as to who may access informationand how that information can be attained.

The database will be maintained by the Development Office and oneindividual will be assigned overall responsibility for the system. Staff anddesignated volunteers from chapters and regions may look at informationthat pertains to fundraising programs they are responsible for within theirgeographical area. They may not, however, have access to information aboutany other areas. Regional staff and designated volunteers will have theability to enter information into the system and edit certain biographical orprogram information about a donor but will not be permitted to edit or deletefinancial information.

The database software will be used to generate official receipts for taxpurposes and gift acknowledgement letters. The majority of such will beissued by the Development Office. However, where a chapter or region hasthe legal ability to issue its own official receipts and wishes to continuedoing so, the appropriate staff or volunteer in that chapter will be trained bythe Development Office to use the software.

Special Funds

A popular tool to encourage continuous giving at increasing levels over aperiod of time by donors is the ability of a donor to establish a special fund.These funds become the cumulative home for the donor’s generosity over a


period of time and may end up being of significant value. Donors areprovided with a variety of broad designation areas including unrestrictedneeds to which the proceeds of their fund may be directed. Funds may beendowed, where only the revenue generated through the investment of theprincipal is expended or they may be more relaxed where the principal maybe used from time to time. The donor is recognized for the total cumulativegiving even if all or part of their gift/s have been expended.

Contributions to funds may be made at any time and from a variety ofactivities including memoriam and tribute gifts, proceeds from events, majorand planned gifts. Contributions may be made to a fund by someone otherthan the fund holder. For example, a fund may be established in honour of achild with hemophilia to be used for hemophilia research. The contributorsto the fund may be anyone who wishes to honour or recognize that child.This may include gifts from parents, other relatives, friends, neighbours andco-workers etc.

Recognition & Stewardship

A comprehensive donor recognition program will be developed to providevarying levels of recognition for both donors and volunteers. Therecognition program will reflect specific fundraising activities, regionalissues, and should be easily tracked and maintained.

Resources

CHS is prepared to adequately resource its fundraising activities. Resourcesrequired fall into three categories: human resources; facilities resources; andbudgetary resources.

Human Resources

In order to appropriately develop and implement the type offundraising program that is described here, a certain number of staffwill be required. The following staffing plan is meant to be adoptedover a period of time thereby easing the financial burden on theorganization until new revenues can be identified.


A Director of Development (Chief Development Officer) will beappointed to oversee all of the fundraising activities of the CHSRevenue Development Program. As previously indicated, this positionwill report to the Executive Director CHS.

The Director of Development will be supported by a Major Givingand Planned Giving Manager and an Annual Giving Manager as wellas research and clerical support.

The Major Giving and Planned Giving Manager is responsible forplanning, coordinating and supporting the national and regional majorand planned gift programs. This includes volunteer recruitment,training and co-ordination, prospect research, proposal preparation,donor tracking and gift stewardship. These duties will be assigned tothe Director of Development until activity levels warrant hiring forthis position.

The Annual Giving Manager is responsible for special eventsincluding a signature event and third party events/activities, directresponse, memoriam and tribute programs, membership program andsponsorship. The Annual Giving Manager is supported by a SignatureEvent Coordinator. This position will report to the Director ofDevelopment until the event has been well established.A research position will be considered early into the implementationof the fundraising program. A researcher will be needed to helpidentify and qualify major gift prospects and prepare backgroundinformation that is crucial in designing effective cultivation andsolicitation plans. This service may be obtained from an outsidesupplier until activity levels warrant an internal hire. As well, clericalsupport will be required for all positions and for gift processing anddata management activities. An individual will also be required todevelop and maintain the central database.

Eventually a Development Coordinator will be hired for each ofseveral regional offices to manage all of the fundraising relatedactivities within that province or region. (Western Canada, Ontario,Quebec, and Maritime Canada). These positions should be phased in


with initial responsibility for regional liaison resting with the AnnualGiving Manager.

Facilities Resources

The Development Office, in the beginning, will be housed within theexisting CHS head office space in Montreal. As the fundraisingprogram develops, it will be important to be able to house all of thecentral office staff in the same location with appropriate meeting andworkspace for volunteers.

Financial Resources

The old adage “it costs money to raise money” is very true. Howmuch money depends on a variety of factors. Different types offundraising vehicles require different investments, but the range runsfrom 10 cents on the dollar for major gifts, planned gifts and capitalcampaigns to 50 cents on the dollar for special events. The moremature a program is the less it should cost, because start-up andlearning costs are one time.

In North America “all in” fundraising costs for healthcareorganizations on average run between 20 and 35 percent. A newprogram could expect to spend between 25 to 45 percent during itsfirst one to three years. Obviously, the more money being raised viamore cost effective techniques such as major gifts etc. the better theorganization’s bottom line will be.

The fundraising program outlined in this document, when fullyimplemented, should initially cost between 25 to 35 cents on thedollar, dropping to 20 to 25 cents as the program matures.

Step 4: Philanthropy Policy

A fundamental policy was required to define and outline the responsibilitiesfor resource development within the broader CHS family. This PhilanthropyPolicy determines and clarifies the lines of responsibility for all aspects of


fundraising within the organization in accord with the details set out in thefundraising plan.

The roles and responsibilities between the national, chapter and regionalboards, fundraising staff, regular staff and volunteers, are clearly defined toavoid duplication of effort and donor confusion.

The Philanthropy Policy is a public document, agreed to by all parties,stating the governing principles of the fundraising relationship between allof those involved in raising money for CHS. For a copy of the policy, pleasecontact the Canadian Hemophilia Society at 1-800-668-2686.


Guide for Establishing a National RevenueDevelopment Plan Based on the Experience of the CHS

Evaluation Form

1. What was your purpose in using or consulting this guide?

Comments__________________________________________________

2. The following questions look at specific aspects of the guide. To what degree did youuse or refer to the following?

Not at all Sometimes All of thetime

a) Backgroundb) Campaign feasibility studyc) Recommendations following the feasibility studyd) The process used to proceed with the new

directione) The fundraising structuref) The fundraising programsg) Resources

Comments________________________________________________________

2. Did you share this material with others?

Comments________________________________________________________


Please return this questionnaire by fax to: 514-848-9661 or mail to:Canadian Hemophilia Society

Resource Development505 – 625 President Kennedy Avenue

Montreal, Quebec H3A 1K2

guide for establishing a national revenue development plan

Documents