Building on a RockMeeting the Challenges of a Changing Economic Environment

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The Current Economic Crisis

Bay Area Non-Profits Brace for 2010 Armageddon 65% of 25,000 Non-Profits Report Declines 39% of Leading Foundations Will Give Less

1.4 Million Registered Non-Profits in US

20% Could be Lost in the Next 12-18 Months (280,000)

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The Good News

Donors are still giving

Donors are more aware

Donors are more discerning

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The Bad News

Donors are giving less

Donors are more demanding (ROI)

Donors are requiring greater accountability

Donors are looking much more like investors

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Matthew 7:24-27

“Who ever hears these sayings of mine, and does them, is like a wise man who built a house upon a rock.

And the rain descended, the floods came, and the winds blew, and beat upon that house and it did not fall because it was built on a rock!

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“And whoever hears what I say and doesn’t do them is like a foolish man who built his house on the sand.

And the rain descended, and the floods came, and the winds blew, and beat upon that house and it fell: and great was the fall of it.”

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Two Houses

When the Storm of Change Occurs

Many Fall

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And Few Remain!

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Building a Foundation10 Things To Focus On In Raising Money in Challenging Times

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1. Focus on Rational Giving

Rational Giving They Know Your Mission They Believe in Your Mission They Have Confidence In You

Only Rational Giving Is Sustainable

Rational Giving Strengthens Infrastructure

Increasing Capital Potential

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A Great Analogy

Falling in love

The steps The initial exposure The first date The second date

Additional commitments

The BIG commitment

Life together

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2. Focus on Leading Indicators

The Indicators The Size of Your Database Average Annual Real Support Average Annual Real Donors Average Annual Core Donors Average Annual Major Donors Average Annual Mega Donors

Strive for 10% Increases

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The Strategic Planning Matrix

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3. Focus on Giving ChartsDonors Prospects % of Total Size Gift Running

Total

1 3 8% $8,000 $8,000

2 6 6% $6,000 $20,000

4 12 4% $4,000 $36,000

8 24 2% $2,000 $52,000

16 48 1% $1,000 $68,000

32 96 .50% $500 $84,000

64 192 .25% $250 $100,000

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4. Focus on Cultivation

Not Everyone the Same

A, B, C, D Prospects

A.I.D. Acronym

Cultivation and Predictability

The Best Idea Ever

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5. Focus on Bridging

There are inexhaustible resources in your Sea of Prospects.

Impacting them will require action: The Entry Level Opportunity The Bridge Conversion

Rules regarding bridges Provide a number of them Keep the Threshold Low

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Two Wrong Assumptions

Everyone “Gets It”Everybody is going to expend the energy to try to figure out how to deal with what you just told them!

Provide ways in which people can be involved in your work, always providing several “low threshold” opportunities to which they can say yes.

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6. Focus on Destination

4 Characteristics of Successful Non-Profits Mission Vision Strategic Plan Development Plan

Plans Build Confidence

Accomplishment Leads to Success

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The Success Characteristics

Mission

Vision=Mission Accomplished

Str

ateg

ic P

lan

Developm

ent Plan

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7. Focus on the Subjective Factor

Get a handle on the subjective

The Attitude Continuum

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Cyn

icis

m

Eupho

ria

Two Things To Remember

Where anyone is on the attitude continuum reflects their perception of your ability to do what you say you’re going to do

Where anyone is on the attitude continuum, you’ve placed them there

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8. Focus on Endowment

What Is An Endowment?

How To Build OneCampaignA Percentage of Gift IncomeA Percentage of All Income

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9. Focus on Building Credibility

Two Ways We Earn Credibility Earn It Borrow It

Advisory Boards

Task Forces

Honorary Chairs

It’s Not What You Know; It’s Who You Know!

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10. Focus on Accountability and ROI

The New Realities

The New Rules

The Annual Report

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