Thayr Richey, President

SDG

6-12-14 IEDA Summer

Conference

RAISING MONEY TO DO ECONOMIC

DEVELOPMENT

Daviess County’s ED Commission is nearing the end of its $1M capital campaign.

The Capital Region EDC will launch a new $3M fundraising campaign this spring to pay for economic development initiatives over the next four years.

Columbus 2020 sets $30M fundraising goal to support economic development.

EVERY NOT-FOR-PROFIT NEEDS MONEY

Indiana communities are caught between the loss of tens of thousands of high-paying, unionized manufacturing jobs that used to contribute to social service businesses.

At the same time we’re still struggling to recover from the “Great Recession.”

THE DOUBLE WHAMMY

Your choice:

Economic development

or

County ambulance service

NOT ENOUGH MONEY FOR EVERYONE

Abate Arts Homeless Animal shelters Sports Libraries 4H Band Food banks

Shelters for abused women

Churches Lions Elks Optimists Hospital foundations Literacy programs Boys & Girls clubs Services for seniors

IN ONE NORMAL-SIZED INDIANA COUNTY

There were over 700 N-f-Ps listed

HOW LEDOS CAN COMPETE

Your track record

New Opportunities

What similar communities are doing

Fear

BUILD ON

Phase I Specify what the funding will pay for (benefits) Prepare LEDO board and staff for the campaign

Determine income needs Create the “ask” Have staff develop materials for the campaign (with

professional marketing/PR help if needed) Ensure that each board member understands his/her role in

the process Identify current and past donors

By donation category By type of organization

Government Business

For-profit Not-for-profit

Individual/Family Review probability of donation renewal

A CLEAR, SIMPLE PLAN IS ESSENTIAL

Assign specific board member to each established prospect Research new prospective donors Assign specific board member to each prospective donor Depending on how formal the plan, you might want to create a

communications strategy for the plan and have a resource development kickoff meeting

Phase II Make the “ask” of dependable established donors For new donors, some LEDOs have small meetings in which the

LEDO president gives a brief presentation on the goals and objectives, the competition, and the need for funding

Then or shortly after, the board members make the “ask”

THE PLAN - CONTINUED

Most people would prefer not to do this

THE KING-ASKS-KINGS SYNDROMEWhen the LEDO president asks, he/she is often

perceived as seeking money to keep a job

WHY SHOULD BOARD MEMBERS HAVE TO ASK FOR MONEY

For businesses it depends on the size and type: Gold Silver Etc.

Levels of funding can also be tied to donor benefits

For individuals, it depends on their commitment to the long-term vitality of the community

Ask for a three-year commitment

Should you ask basic employers for donations?

HOW MUCH DO YOU ASK FOR?

1. People respond to danger2. The danger for your community is that – in an

economy that is both making a fundamental shift and highly competitive – the community will lose its economic reason for existence

3. The solution is your organization’s ability to grow established employers and recruit new ones

4. These companies employ local businesses’ customers

5. These companies are the potential employers of your donors’ children and grandchildren

MAKING THE ASK

FOCUS ON TOUGH COMPETITION

For Example:Gold – has a board

membership

Silver – Can attend quarterly and annual meetings

Bronze – can attend annual meetings

THEN SELL THE SMALL BENEFITS

1.What is the problem that drives your LEDO?

a.30 secondsb.60 secondsc.90 seconds

2.What does your LEDO do that solves the problem?

a.30 secondsb.60 secondsc.90 seconds

THE ELEVATOR SPEECHES

1. A greater focus on one-time outside grants for special projectsa. USDA-RD to provide RLFsb. EDA for key infrastructure leverage

2. For those 501(c)6’,s LEDOs are forming additional 501(c)3’s

3. LEDOs are also rethinking the board structure to bring in additional “members” of the corporation; these members then elect a smaller board of directors

4. A hot trend that calls for more revenue is the creation of “deal-closing” funds

CURRENT TRENDS IN LEDO RESOURCE DEVELOPMENT

How difficult will it be to raise that 2015 budget?

How many of your board members will be willing to make the ask?

What has worked in the past for you?

How formal should the resource development plan be in your community?

DISCUSSION