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Working Together to

Achieve Fundraising

Success

Presented by:Thomas Kissane, Principal and Managing Director, CCS

Wednesday, January 14, 2015 | 12:15-1:30pm

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Discussion Focus

Understanding the importance of creating a shared vision.  Knowing, throughout the organization, where your institution fits and where it is headed in the community.

Topics: Trends

Engaging your board members

Common issues and challenges

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Trends

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Philanthropy in America

Source: 2014 Giving USA FoundationTM

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Where The Money Came From Over the Last 3 Years

2011

2013

$18000000000b

$20000000000b

$22000000000b

$24000000000b

$26000000000b

$28000000000b

$30000000000b

$32000000000b

2011

2013

$38000000000b

$40000000000b

$42000000000b

$44000000000b

$46000000000b

$48000000000b

$50000000000b

2011

2013

$10000000000b

$12000000000b

$14000000000b

$16000000000b

$18000000000b

$20000000000b

2011

2013

$210000000000b

$215000000000b

$220000000000b

$225000000000b

$230000000000b

$235000000000b

$240000000000b

$245000000000b

Individuals Bequests Foundations Corporations

In 2013, the $335.17 billion Americans gave reflects a 4.4% increase from 2012, 3.0% adjusted for inflation.

Individual giving accounts for an estimated 87% of all giving, inclusive of bequests and family foundation giving.

Giving by individuals has returned nearly to pre-Economic Crisis levels, attributed to much larger gifts and bequests.

Historically, corporate giving increases, though not proportionally, as company profits rise. Corporate profits have increased more slowly in recent years, which is reflected in the slight decrease in corporate giving.

Source: 2014 Giving USA FoundationTM

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Where Does The $335.17 Billion Go?

Religious Education

Human

Services

Foundations

Health Public-Societ

yBenefit

Arts/Culture

&Humaniti

es

IntlAffair

s

Environ-

mental&

Animal

105.53

52.07

41.5135.74

31.8623.89

16.66 14.939.72

($ in Billions)

In 2013, the $335.17 billion Americans gave reflects a 4.4% increase from 2012, 3.0% adjusted for inflation.

Rapid growth in giving to the education sector can be linked to an increase in the number of capital campaigns.

The human services sector saw counter-cyclical growth rallied by the demand for support during the recession. A shift to pre-recession giving preferences by donors has resulted in slower growth for this sector.

Consistent support of the health sector mirrors donors’ commitment to researching cures, supporting facilities, and funding innovative new research.

Arts organizations were forced to refocus their fundraising efforts during the recession, as wealthy donors shifted their support away from the arts. The increase in giving to the arts in recent years may be the result of these donors returning to their pre-recession giving behavior.

Source: 2014 Giving USA FoundationTM

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Why Do People Give?

of households

earning more than $75,000 of middle

income households

of households earning less

than $30,000

…have donated money to a charitable cause or organization in the last year.

95%

86%

67%

Financial Relief/Tax Benefit

Being Asked

Owe the Community

Religious/Moral Obligation

Ability to Give

Impact of Gift 83%

64%

53%

47%

50%

22%

Donors Give Based On The Impact Of Their Gifts2

Analysis of Interview Results of 32,000+ Non-Profit StakeholdersSince 2011

Source: 1Gallup Poll, 2013; 2CCS Analytics (2014)

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History of Giving

Total charitable giving graphed with the Standard and Poor's 500 Index, 1973-2013 (in billions of inflation-adjusted dollars, 2013 = $100)

Source: 2014 Giving USA FoundationTM

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A Competitive Landscape

The number of 501(c)(3) organizations, 2003-2013

Source: 2014 Giving USA FoundationTM

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Giving in 2013

Source: 2014 Giving USA FoundationTM

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Trend: Lengthening Campaigns

What we’re seeing at CCS:

Campaign length Quiet phase

Source: CASE Campaign Report 2013

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What we’re seeing at CCS:

Importance of Principal Gifts

Source: CASE Campaign Report 2013

% of Total Campaign Dollars Received, by Donor Category

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Board Support

Important to harness board support in education

Average board gift to education was $12,520, 250% greater than average cross-sector board gift

Leverage board for fundraising assistance

Board Use by Percent of Organizations

Source: Nonprofit Research Collaborative (NRC), Nonprofit Fundraising Study 2012

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Creative Fundraising Strategies

What we’re seeing at CCS:

– Public universities adopting private university fundraising models

Increased alumni engagement

More capital campaigns and planned giving approaches

Campaigns encouraging unrestricted giving or targeting “intangibles” such as student tuition, endowed professorships, etc.

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Giving in the Age of Technology

Source: 1Chronicle of Philanthropy 20142M&R Benchmarks 2014

100 of the largest charities reported receiving 13% more in online donations, and 25 of these

charities collected more than $10 million each in 2013 from online gifts1

$142 was the average online gift size in 20132

Across 2013, online monthly giving, grew by 25%

Accounting for 16% of total online giving

Nonprofits’ online revenue in 2013 grew 14% compared with 2012 totals

Good for securing many, smaller gifts: average online gift was $136

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Engaging your Board Members

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Getting Started: Best Practices

Making the Shift from a Fundraising to a Philanthropic Culture

1. Your Board and leadership truly understand “philanthropy.”

2. You recognize that your primary role is not just fundraising; it is building the philanthropic culture in your organization so that philanthropic relationships can survive and thrive.

3. Your organizational leadership understands and acknowledges the difference between philanthropy development and fundraising.

4. You have a statement of philanthropic values.

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Getting Started: Best Practices

5. Development is a core function that is long-term, strategic and responsive to community needs.

6. Development is everyone’s job.

7. One hundred percent of your Board makes annual philanthropic gifts to your organization.

8. Furthermore, your Board demonstrates its ownership of fundraising, and all Board members participate in fundraising – but not all in the same way.

9. Donors are viewed as stakeholders in your organization.

Source: Advancing Philanthropy Winter 2015

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Boards and Fundraising

Time spent on fundraising ranged from 10% to 45%

55% spent 20% or more of time on fundraising

25% specifically requested training in fundraising

53% perform a fundraising activity daily

43% communicate daily with the Director of Development

18% unprepared for fundraising

Greatest challenge – fundraising

Source: The Chronicle of Higher Education: Special Report – What Presidents Think

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Board’s Role in a Campaign

Set the tone for fundraising by

promoting philanthropy as an institutional

priority and creating a culture of philanthropy

Be the public face of the campaign

Engage with top prospects in all phases,

including personally visiting and soliciting high-level prospects.

Dedicate time and resources; prioritize time

on activity that raises dollars

Be heavily supported in fundraising endeavors

by Foundation/Developmen

t staff.

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Finding New Major Donors

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Identification

Individuals in the geographic areas served by client

People who are similar to client’s service population in age, race, income, education, etc.

Donors to other agencies with similar missions

Customers of magazines or of retail establishments that mirror the mission/work of your client

Young Professionals

Volunteers

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Identification – What to look for

High Capacity is determined

through wealth screening and traditional prospect

research.

High Affinity is based on how well the University

knows the prospect. There may well be a “point system”

by which you award each prospect points based on

certain actions.

BHigh Capacity

Low Affinity

AHigh CapacityHigh Affinity

DLow CapacityLow Affinity

CLow CapacityHigh Affinity

Affinity

Cap

acit

y

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Prioritize Top Prospects

Segment your prospects into:

o Top 25o Top 50o Long range prospects

Use an A, B, C ranking system.

Better to have organized interaction with a few prospects than to be overwhelmed with too many.

A B C

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Research

Information and research fuel good strategy.

– Determines the donor’s area of interest.

– Explores gift capacity of the donor.

– Enables you to tailor the gift request strategy.

Family

Businessaffiliations

Wealth

Philanthropicinterests

Givinghistory

Education

Interest XCapacity

= Potential Gift

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Common Issues and Challenges

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Common Issues and Challenges

When funding needs or aspirations do not sync with fundraising capabilities.

Reliance on others to give or to lead.

Misunderstanding of roles and expectations of leaders and leadership.

What worked elsewhere will not necessarily work for your current institution.

Unnecessarily rushing to decisions on goals, strategies, and public announcements.

A. Great Expectations

B. Other People’s Money

C. Trading Places

D. Square Peg, Round Hole

E. Rush To Judgment

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Common Issues and Challenges

Taking the time to build ownership among your stakeholders in setting goals and priorities.

Investing the resources in staff and budgeting required for success.

Campaigns take a long time and often your competitors are counting differently than you are - which artificially raises expectations.

Overestimating the potential and misdirecting resources to grassroots and internet fundraising techniques.

Understanding what motivates donors and ignites their passions.

The importance of understanding how different organizations count, how long other campaigns take, how much they invest in fundraising, how mature their programs are.

F. Building Ownership

G. The Price of Success

H. From Here to Eternity

I. Mass Appeal

J. Mixed Messages

K. Apples to Apples

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Ten Mistakes to Avoid

Too Much Publicitytoo Early

Publicly communicating too many specifics about the possible fundraising projects without proper planning, consultation, coordination, and study.

Recruiting the EntireCommittee too Quickly

It might be best to begin with a small core group of trustees and build slowly in order to achieve commonality of purpose, fine tune objectives, ensure a strong, cohesive, and effective working team.

Setting the FinancialGoals too High

Stratospheric expectations in terms of financial needs and goals will serve no useful purpose and unnecessarily raise expectations without careful study and detailed costing.

Setting the FinancialRequests too Low

The rush to establish giving levels without careful analysis and strategizing could seriously reduce fundraising potential.

It is theAccountability, ___!

Establish fundraising ratios, budget, costings, ethical standards and policies.

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Lack of Clarity of Leadership Responsibilities & Expectations

All leadership recruitment should be conducted in an organized and deliberate manner: i.e., private meeting, written agenda, talking points, appropriate documentation.

Not Having Plansand SystemsEstablished BeforeFundraising

Many behind the scenes fundraising operational logistics for something of this magnitude.

A detailed fundraising plan will be required sooner than later.

Core Leadershipthat Does Not Giveat Required Levels

If the perceived fundraising leaders do not contribute at exemplary level, there is little that can be done to raise giving sights once the campaign begins.

No Clear Road Map The ability to recruit strong fundraising leadership and secure initial seed investment will depend greatly on the active involvement of leaders, and on the clarity of the outlined path to success.

Not Listening to your Development Team !

Ten Mistakes to Avoid

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Thank You!

Thomas KissanePrincipal and Managing DirectorCCStkissane@ccsfundraising.com212-695-1175www.ccsfundraising.com

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